Everything you Need to Know About Engagement Ring Insurance

So you've got the ring! Now what? Do you know the best way to get your engagement ring insured? This is a question I help LITTLE BIRD clients tackle often. The right insurance path can vary from person to person, but I always recommend  to my clients to have their ring insured. Picking a plan and an insurance company can be a head-scratcher. When in doubt, ask yourself: Is your engagement ring custom made? Got lots of pavé diamond accents? Did I select an antique engagement ring or use an heirloom diamond? Is my center stone a sapphire, ruby, emerald, moissanite, aquamarine or other? Am I pretty nervous about losing or causing damage to the ring? I recommend bulletproof insurance in these cases. Enter: Jewelers Mutual. Because my clients always have so many questions when it comes time to talking ring insurance, and because I am an engagement ring expert - not an insurance expert - I had a little conversation with my friends from Jewelers Mutual and asked them the 7 most popular questions I get from my clients. Hope this is helpful!

1. What are you protected against with Jewelers Mutual coverage? Are you covered for loss, theft, damage, disappearance with all policies? 

Given that Jewelers Mutual is focused solely on jewelry we approached our coverage from the ground up- and view jewelry differently than a Homeowners policy ever would.  We know a disaster can be as simple as leaving your engagement ring in that coffee shop bathroom, or your new watch sitting on the golf cart on Hole 6. That’s why every policyholder receives the same comprehensive worldwide coverage that includes protection against theft, accidental loss, and damage. Lastly, we realize you can’t always pinpoint how or where your jewelry disappeared, so we cover ‘mysterious disappearance’- a coverage often overlooked by other carriers. As cliché as it sounds, we cover real life.

2. So, in a nutshell what are the main coverage differences between adding an engagement ring to an existing renters or homeowner’s policy vs. taking out a jewelry specific policy with Jewelers Mutual?

You can use a Homeowners/Renters insurer to protect your jewelry, but understand your jewelry will only be protected against certain types of losses (like fire & burglary) and up to a specified dollar amount (standard “limits”- the money paid out to you- are typically around $1500-$2500). Additionally, a jewelry claim on your homeowners could affect your entire policy. So, because you lost great-grandma’s Eleanor’s necklace now means you could be paying more to insure your home. Even if you opt for a “rider” (an optional add-on) to your Homeowners coverage, the policy details are still not as comprehensive as Jewelers Mutual’s standard coverage.

Using a real world example-  you file a claim because you lost your custom-made, five- year anniversary ring. Typically, a Homeowners insurer will either A. Send you a check and leave the repair/replacement of the piece up to you or B. Direct you to a jeweler of their choice to get the work done. If that same claim was filed with JM, we’d work directly with the jeweler of your choice to get the piece repaired or replaced as close as possible to your original ring. We pride ourselves on SAME kind and quality, not LIKE kind and quality.

3. Are there different levels of coverage, and what’s the most popular?

Whether you’re insuring a charm bracelet, a Rolex Daytona, a Super Bowl ring, each and every one of Jewelers Mutual’s policyholders receives the same policy coverage and benefits. For 105 years we’ve prided ourselves on being the best jewelry insurance offered and we understand that begins and ends with ensuring we are there when our policyholders need us.

4. What are the average cost differences?
Jewelry insurance is much more reasonable than people anticipate. Typical rates average 1-2% of the value of the jewelry you’re insuring annually. So, for example, an $5000 ring would cost between $50-$100 annually to insure.
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And we provide you the opportunity to add in a deductible ($100, $250, $500) to knock down the annual premium, but most policyholders opt not too as the cost is so reasonable.

Jewelers Mutual has a quote tool available that allows for you to choose your best option prior to applying for insurance.

5. How long is an appraisal good for?
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It’s in your best interest to get your jewelry appraised on a regular basis as jewelry prices (gold & diamonds) do fluctuate. The appraisal will provide you the best insight as to what your pieces are worth which should inform what you insure them for.

Since Jewelers Mutual understands the nuances of jewelry and the chances of our policyholders being underinsured, we have an annual Insurance Value Adjustment (IVA). This increases your policy limit annually by a small percentage and in turn increases your likelihood of being properly insured in case of a claim

6. What is something that you wish all newly engaged folks knew about jewelry insurance?

That it exists! Truly, the biggest hurdle we face is that consumers simply don’t know the category- much less our brand, exists. What I hear most often is “yeah, I think it’s on my Homeowners policy”. It isn’t until you begin to discuss policy details that you see eyes widen and palms get sweaty. I’m not here to induce fear, rather let people know that there’s options outside of a warranty and homeowners insurance. In a survey we did a few years back we found that 33% of those surveyed considered an engagement ring one of the “most expensive things they own”. 43% of them did not have the ring insured. It’s stunning the time and attention couples pay to selecting the ring, planning the proposal, taking the ring selfie, and everything that comes with it, but may not take an additional minute to consider what happens if it’s lost.

​7. You’ve been in business for a long time! How has your business changed over the past 100 years?
Jewelers Mutual started in 1913 by jewelers who wanted to help protect other jewelers. We’ve earned the trust of thousands of jewelers over the decade and with that trust came co-creation. They wanted us to offer the same peace of mind they got with their coverage to their consumers. So in 1953, we designed the consumer jewelry coverage we’re discussing today.

While trends and technologies come and go, jewelry buying will always be part of our cultural fabric. It’s a purchase that helps celebrate new love, achievement, birth, or even coming of age. We worked diligently to ensure that buying a Jewelers Mutual policy is as seamless as possible, be it in the eCommerce shopping cart, your neighborhood jewelry store, or in the comfort of your own home. While our gift may not be made of metal and stones, we feel the gift of peace of mind is just as valuable.