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Engagement Ring Insurance: Everything You Need to Know About

engagement ring insurance australia

Maybe you are deep into a storybook romance with a special someone or you’ve been swept off your feet at first sight. Either way, though, it’s love. And what better way to express that feeling than with an engagement ring?

But before you pop the question, let’s talk about keeping that perfect representation of your love safe from all the possible losses that could prop up between now and your wedding day — or beyond, long after you and your partner have said, “I do!”

Insuring an Investment in Love

Sometimes it’s a mistake as simple as taking it off to wash your hands and walking away without a second thought. Other times it’s a burglar snatching the ring right out of your home while you enjoy a beachside vacation on the coast. There are countless different reasons you’ll want to protect that brand-new engagement ring from the moment it first slips onto your finger and the day you get married. Fortunately, engagement ring insurance is here to help.

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Engagement ring insurance can be acquired the very moment that the ring itself has been bought, meaning that a little advance thought can make sure your new ring is insured before you and your partner have started planning your pending nuptials. These plans can cover everything from theft to damage, and may replace the item outright or provide remuneration on an actual-cash-value basis, depending on your policy.

More Than Sentimental Value

One key to making sure your engagement ring is adequately protected is to bring it in to a professional, reputable appraiser to determine the actual value — which is especially important if you’re popping the question with a family heirloom or any other jewellery that didn’t come with a price tag attached. In the case of a store-bought diamond ring, you’ll also want to inquire about a diamond certificate or grading report which provide your appraiser with details like size, clarity and carat weight which paint a sharper image of your gemstone’s overall quality.

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It might be worth exploring a second appraisal, too, if the first gives you a number that seems out of proportion to your expectations. If they provide you with a value that’s too high, then you’ll only end up paying extra in premiums while taking on the risk of getting a lower return than you’ve paid in the event of a loss.

Don’t forget to re-appraise as the years go by, too. Since engagement rings can increase in value over time, much like other jewellery items and antiques, you’ll want to be certain that you aren’t underinsuring an object whose worth has grown as it has aged.

If you purchased the ring on sale or at clearance prices, be careful to insure it for its full value and not the sticker price. If you’re not careful, it’s quite easy to end up underinsured if you don’t specifically delineate the item’s actual value.

Is engagement ring insurance covered under home my home insurance?

If you’re thinking about home insurance, it’s likely you’re thinking about something that protects your house, apartment or condo and all your belongings inside from possible risks such as fire, water damage and theft. What you may not know, however, is that engagement rings and other items of jewellery are often included under the greater of standard home insurance policies.

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Whether these items are included or not, and whether that coverage is a part of the standard policy or added on top of your base coverage, will depend on which provider you choose and what policy you decide best suits your interests. Some providers, such as Square One, let you personalize your coverage so your policy is customized to meet your specific needs. In other words: this means that if you don’t have any engagement rings or other jewellery, then you can leave them off your coverage and lower your premium. But if you do have a ring you’d like to insure, you can choose to add that coverage to your policy.

However, if you get engaged or buy any jewellery after you’ve purchased insurance, you’ll want to get in touch with your insurance provider and update your coverage to better reflect your evolving needs. This step is especially important since neglecting to update your insurance provider about changes to your insurance requirements could leave you unprotected in the event of a loss and prevent you from being able to file a claim for some losses. If you want to learn more, read Square One’s article on insuring jewellery.