You’ve just gotten engaged. The ring is beautiful. And expensive.
But what if it’s lost or stolen? Will your insurance cover the loss?
Only for a limited amount, minus your deductible, if you rely solely on your renters, condo or home policy.
It’s a much different story if you add a jewelry floater to your policy and include the ring among the endorsed (covered) items.
Most home policies cap any single piece of jewelry at no more than $1,000. And most policies include a deductible amount, which you’re responsible for paying. So, if the ring is lost or stolen, your coverage under a home policy would be a maximum of $1,000 — minus your deductible.
If your ring is worth more than $1,500, you need to add a jewelry floater to your renters, condo or home insurance policy to be covered in full, if you want it covered.
With a floater, you have a choice between Agreed Value or Replacement Cost coverage.
With Agreed Value coverage, you tell us an amount and we’ll reimburse you that amount in the event of a covered loss. With Replacement Cost coverage, we’ll replace your ring with one of similar quality (cut, carat, clarity, etc.). Many companies don’t offer Agreed Value coverage. You’ll want to ask your agent how your ring is covered.
Agreed Value is a good option if you have a jeweler you specifically want to use. If you choose Replacement Cost insurance, we will find a jeweler on your behalf who gives us a good price on a replacement.
One big advantage of a jewelry floater: You can have a lower deductible for your jewelry than you have on the overall policy — as low as $0. A $5,000 ring with a zero deductible will add about $50 a year to your policy.
A jewelry floater can cover all your jewelry, of course, not just the engagement ring I used in my example. You can also add floaters for other expensive items you own, cameras, art and expensive collectibles, for example.
One thing to know if you are adding an engagement ring: As soon as the ring is exchanged, the presenter no longer has an insurable interest in the ring — unless the fiancée is a named insured on the policy of the person giving the ring. So, if the giver and the recipient are on separate insurance policies, make sure the ring is listed on the policy of the person who receives it.
Questions? I can help. You can reach me at 303-452-6662. And congratulations if there’s a wedding in your future.