How to Insure an Engagement Ring

| January 26, 2023

Congratulations!  They said yes, now what do you do?  Many times an engagement ring is one of the largest purchases for a young person.  That person may have no other insurance because they are still living at home and on their parents policies for home and auto.  How and when should you cover this expensive little item that has brought so much happiness?

First, you probably should have had it insured as soon as you got possession of the ring from the jeweler.  But if you haven’t, it’s not too late (as long as nothing bad has happened to the ring).  A good starting point would be to contact the agent that insures the home you live in.  This may be your house or apartment, or your parents’ home.  Most likely, you will be able to add the ring as a “scheduled” item either on the home policy itself or as a stand-alone policy.  These stand-alone policies are sometimes called inland marine policies or personal articles floaters.  By “scheduled” item, we mean that you will specifically describe and insure that ring for an agreed upon value.  The value will most likely be what you paid for it, but may be more if the appraisal of the item is higher than what you paid for it.

Now, after you propose and they accept, they are now in possession of the ring, but you may still have a loan on the item.  So who now “owns” the ring and therefore has the insurable interest? Good question.  And no easy answer.  If you’ve insured it as a “scheduled” item, however, you should be fine.  The policies or endorsements we’re describing are intended to cover the item regardless of location.  So whether you are in possession of the item or your spouse-to-be has it, the coverage should be fine.

As always, we strongly recommend you discuss this with a professional licensed insurance professional.  Now is a great time for your and your spouse-to-be to find an insurance professional that will take the time to help you design an insurance program that will best suit your needs and be with you throughout the years as your insurance protection needs evolve.