For some, buying a wedding or engagement ring insurance may not seem to be a good idea. It could be due to the emotions attached with this piece of jewelry. However, one shouldn't forget that just like any other commodity, you need to protect your engagement ring too.
A renters' or home insurance policy doesn't provide full coverage for fine jewelry items like an engagement ring. On the basis of careful study of different policies, one should decide upon which policy to buy. To get the insurance, one should possess all the receipts and certificates of the ring. In addition to it, one should determine the cost of the ring. A ring appraisal should be secured in order to fix the cost of the ring. One can think about getting the insurance arranged by the jeweler itself. It is however necessary to obtain correct information with respect to the extent of coverage provided by insurance policies.
Under the homeowner policies, coverage is provided in case any damage is caused to the house due to tornadoes, fire or other such problems. These policies however, do not cover damage caused to the ring resulting from household chores or other such things. Also, couples should add 'ring rider' to the policy when they change homes.
Actual Value Policies
The actual value policies are the most preferred insurance policies by customers for engagement rings. This is because the policies are not very expensive. These policies calculate the value of rings by subtracting the depreciation cost. The customer is thus paid a used ring price as compensation for damage, theft, etc.
As per this policy, one gets a replacement of the piece of jewelry. An identical piece of jewelry is provided as the replacement. The cost of replacement is calculated by taking into account the current market price. Thus, depending on the market situation, one might gain profit or suffer a loss while availing the replacement.
Valued at Policies
These policies are the most expensive and availed only by few people. As per the 'valued at' policies, one can set a particular value of the ring. Factors such as heirloom associated value and emotional value are also taken into account while deciding the policy price.
A separate policy to cover engagement rings is a necessary thing to consider. The monetary, and most importantly, the emotional value associated with engagement rings make the process of buying insurance policies an essential thing. Experts also advice couples to have the photographs of their ring handy in case it is damaged or is to be claimed from the insurer.