The last thing we want to think about during the excitement of an engagement is jewelry and engagement ring insurance. However, obtaining proper insurance for a new engagement ring or other precious jewelry is a simple and important step towards protecting your valuables.
The month of February, “Valentine’s Day Season,” is a popular time for couples to pop the big question. It seems our Facebook and Instagram feeds are filled with sparkling rings from marriage proposals this time of year. If you’re engaged or thinking about getting engaged you will need to make sure your ring is fully protected. We put together some information to help you through the process.
Who insures the ring?
When you purchase valuables (like an engagement ring) for someone else and you want to insure the item, you are trying to create an insurable interest. Insurable interest means you have a strong interest in an item, but it does not reside with you in your home and you would like to insure it over a period of time.
The easiest way to create insurable interest for the person in possession of the ring is to make the use of the ring by your fiancée conditional. (Yes, this is not romantic, so use caution and common sense.) Basically, you are saying, “You still own the ring and it doesn’t truly become your future wife’s until you both are married.” Until that time, you have an insurable interest and there should be coverage under your policy.
If you make ownership conditional on marriage, you’ve created an insurable interest and may insure the ring on your own homeowner’s policy. Since most homeowner’s policies limit theft of jewelry to about $1,500.00 (some less, some more), the ring should be scheduled on your homeowner’s policy. An alternative is for your fiancée to insure it on their policy since coverage usually extends to any property used by the insured, not just property owned.
Once married, a single homeowner’s policy should be in place with both husband and wife as named insureds and the ring and other jewelry scheduled on the policy. If you have any questions about the process of insuring jewelry or other precious items, please contact our office. One of our wonderful insurance advisors would be happy to assist you in making sure your valuable items are fully protected.