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.

Read Also: 10 Interesting Facts About Gold

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.

Read Also: How to Invest In Precious Metals in 2021

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. 

What's Covered Under a Policy?

You might wonder if a standalone jewelry insurance policy is worth the investment. Considering the world is an imperfect place and accidents happen all the time, we would say that absolutely, 100% it is worth it. Check out everything your Zillion jewelry insurance policy will cover:

  1. Accidental Loss: You’re on your honeymoon and your beautiful diamond engagement ring slips down the drain, never to be seen again. It’s sad, but your Zillion insurance policy covers the cost of a replacement ring.
  2. Theft: Your home was broken into and your wedding ring was stolen. Guess what? Your jewelry insurance policy covers the cost of replacing that, too.
  3. Disappearance: You, er, actually don’t know what happened to your engagement ring. Surely my Zillion policy won’t cover that, right? Wrong—your ring is covered even if you don’t know what happened to it.
  4. Accidental Damage: The diamond on your wedding ring was chipped after some home improvements; your gold band bent during a fall; the entire gem popped out of the setting due to an accident—all of this is covered under your Zillion insurance policy.

Fires, Floods, Hurricanes, Tornadoes, Godzilla Attacks*: If your ring is lost/damaged during a natural disaster, Zillion’s got your back. We’ll cover the cost of a replacement or repair.

(*We’re not actually sure about the whole giant lizard attack thing. That’s never happened and frankly, we hope it never does.)

What's Not Covered?

We’re proud to cover most things you can think of, but there are some exceptions. Common insurance policy exclusions include losses or damage caused by wear and tear (like over time your ring develops gouges or discoloration), deterioration or defect, intentional acts (you can’t take a hammer to a ring and then file a claim for the damage!), voluntary parting (meaning, you give the ring back to the person who gave it to you, or you put it up for sale in a pawn shop), war, nuclear hazard, or civil authority (Civil authority means that a government entity denies or prevents access to your ring).

How Much Does Engagement Ring Insurance Cost?

Probably a lot less than you'd think!

The average American spends $6,000 on an engagement ring. That’s not a small amount and it’s easy to see why a lot of people balk at spending even more on jewelry insurance. But ask yourself: Do I really want to have to shell out the full $6k if something happens to that ring? (Spoiler alert: No. No you do not.)

So how much do specialized jewelry insurance policies cost each year/month? There is no “set in stone,” (get it? Stone?) answer, but there’s a general formula you can use to calculate the cost of a specialized jewelry insurance policy. On an annual basis, you can anticipate paying:

1-2% of the ring’s replacement cost or;

$1-$2 for every hundred dollars insured.

In real-life figures, this translates to an annual insurance premium of just $72–$144 on an engagement ring appraised at $6,000! This breaks down to approximately $6–$12 a month. We’re willing to bet that you spend more than that—maybe even triple that amount—just on your morning coffee!

While a lot of Insurance companies might cover jewellery in their policies as an add on, it is not their specialty. Ring insurance is a very precise field and requires a completely tailored insurer who specialises in quality jewellery. If you do decide to use your current home and contents insurer, make sure that you read the fine print.  

Conditions to be aware of:

  • Was it lost at the insured address ?
  • Will they cover you if the item is lost while in transit, or at another location  
  • Does it cover you while you are overseas ?
  • If you are ever thinking of going on holidays overseas, it is a good idea to have ring insurance to cover your jewellery
  • Was there any forced signs of entry ?
  • If the thief has managed to rob your home, due to an open window, will they still cover you and replace your jewellery ?
  • What value will you actually receive ?
  • Do you know the exact agreed amount that you will receive in the event of the claim, not whatever figure the insurance company can haggle the jeweller down to.
  • Will they update you insured value every year – Free of Charge ?
  • Making sure that you insurance is in line with the price of gold and diamonds is crucial. Without it you could be paying more than you have to, or worse, under-insured. The usual cost of revaluing your rings could be as much as $50 per ring each year.
  • What process will you have to go through in the event of a claim ?
  • Will they make you jump through hoops to prove that you still had the insured item, or will they simply ask for a police report and/or signed affidavit. 

While nothing can ever replace the sentimental attachment you had with your jewellery, it is important to protect yourself from financial loss. The sentiment behind your rings is priceless, but the rings themselves can be replaced, if you have the right ring insurance. You also need to make sure your valuation certificate.

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.

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