Whenever you purchase a diamond ring, it’s a good idea to get it insured. It doesn’t matter if you’ve spent $500 on a ring or $50,000, you want to be sure that it is backed up and you want to be reimbursed if the ring is lost or stolen. Of course, you’ll never get reimbursed for the sentimental value, but having monetary reassurance can really help. It is critical that you start shopping for policies even before you purchase the ring, because you want to consider a number of important factors. Here are some factors to consider when insuring your diamond ring.
Do you already have a homeowner’s or renter’s insurance policy?
A lot of insurance companies will only insure your ring if you have a renter’s or homeowner’s policy. Before you take out an expensive policy on your ring, you may want to check in with your previous provider, because you may be able to lump your ring in with your existing policy.
Do you need to get the diamond ring appraised?
This is an important factor to consider because you want to be sure that you have all the right documentation to apply for a policy. In some cases, you may only need your receipt. In other cases, you may need a detailed appraisal. It all depends on the insurer’s policies. If you don’t have the right documentation, it may draw out the process, which will only increase the risk that something will happen to your wedding ring.
Does the policy cover loss, theft and potential damage to the ring?
It is important that your wedding ring has all three factors covered: loss, theft and damage. Why is this important? Mainly because you don’t want your diamond to get damaged and then have your insurer tell you that damage isn’t covered. The same thing goes for theft and loss. Ideally, you want to be insured for anything that could happen to your ring, because anything can and will happen if you don’t take the proper precautions.
Will the policy monetarily reimburse or will they simply replace?
Some policies replace and some policies reimburse. This is where things can get tricky, because while it would be nice to simply have your ring replaced, what happens if the ring is vintage or can’t be replaced? If that is the case, you probably want monetary compensation. Not only that, but if the ring has increased in value and you have a current appraisal, then you have proof that the ring is worth more now than it was when you bought it.
What is the value of the ring?
Speaking of having your diamond ring appraised, you want to consider the value of the ring before you take out a policy, because you want to have the current value of the ring appraised. This means that you want to calculate the appreciation of the ring, so that when there is loss, damage or theft, you can be up to date and not come up short when you file with your insurance company. In the end, you can hope that nothing will ever happen to the ring, but that is simply like living in a fool’s paradise.