Protecting Your Fiancée’s Engagement Ring
Did you pop the question to your loved one over Valentine’s Day? Perhaps you did it over the holiday season and you’re now wondering whether or not to purchase insurance to protect the ring on their finger? An engagement ring is an investment, and thankfully you get to dictate how much you’re willing to risk. The average cost of an engagement ring is often in the thousands, so it makes sense to protect that investment with adequate insurance.
The Ring
There are four elements to determining quality of a diamond- carat, clarity, color, and cut. It’s wise to understand these elements. A carat is a diamond’s weight, not size, so don’t be fooled by how big a diamond may seem; the clarity is an assessment of a diamond’s internal and natural characteristics. The color and cut of a diamond depends on preference; color is graded on an alphabetical scale, and cut varies, but affects the way the gem shines.
The Insurance
Ask a jeweler for the assessment of the diamond and a GIA (Gemological Institute of America) diamond grading report. These documents will help to verify the value, condition, and elements of the ring so that you can insure it more accurately.
You proposed but your fiancée will live in their condo until the big day – who should insure it? When you purchase something valuable for someone and want to insure the item, you create insurable interest. Insurable interest means that you don’t possess the item, but you have an interest in it, and therefore, want to insure it for some period.
An engagement ring should be scheduled on your homeowners insurance policy. However, most homeowners policies limit theft of jewelry to around $1,500. If you spent over this amount of money on your love’s engagement ring, you will want to take out additional coverage. Talk to your insurance agent about adding a rider so that the ring has protection closer to its actual value.
To review your coverage and secure reliable insurance policies for expensive jewelry, talk to the team at Premier Risk Insurance today, serving Long Island and neighboring cities in New York.
