Do you own a wedding band? Is it protected in case it’s lost, stolen or damaged? There are different ways to insurance your ring and they include getting a completely separate policy for the ring or insuring it with a rider on your current home insurance. Either way can make good economic sense, but you need to assess your needs first. It also helps to speak with a qualified professional who can steer you in the right direction.
Know What Your Current Insurance Policy Covers
Perhaps you already have a homeowner’s contract, renters’ policy or coverage on the ring in a separate agreement. The point to remember is this: carefully read the fine print of any paperwork you have and know exactly what is and isn’t covered, the dollar value of any protection, and any other details that might make a difference in the event you report a loss. You don’t want to find out after the fact that you only had theft coverage, for example. Know where you stand and speak with your agent to clear up any areas of concern or confusion.
Check Out New Coverage Options
Most jewelry owners are surprised that the coverage they thought they had either does not exist or is far too low to pay for a replacement ring. Look at all your options. Sometimes it’s wise to add jewelry items onto homeowner’s coverage, as long as the contract offers full replacement cost in the case of a loss. In other situations, you might be better off opting for a specific policy on the item. When you go that route, expect to pay an annual premium of between one and two dollars for each $100 of the appraised value of the jewelry piece. So, if your diamond band is worth $5,000, for example, expect to pay between $50 and $100 per year for replacement coverage.
Get the Ring Appraised
Jewelry changes in value over time. Sometimes values go down, rise or stay the same, based on what the market value of the metals and stones are. Don’t be surprised if your wedding band appraises for a lower value five years after purchase. That’s actually more likely than witnessing an increase in value. Diamond sellers often place large mark-ups on rings, so appraisal values typically run much lower than purchase prices. In any case, values do fluctuate a lot, so be certain to have your item looked at by an experienced professional. Only then will you be confident when you purchase a policy to protect against various kinds of loss.
Know What to Pay
About two-thirds of married people do not insure their rings separately, instead opting for whatever protection is provided by their homeowner’s policy. This is an unwise approach because all too often there’s no full cost protection in place. If you want to make sure that your special jewelry can be easily and quickly replaced after a loss, sit down with an agent and go through all the details of what you want and need. That’s really the only way to get peace of mind about one of your most valuable assets.
Article Submitted By Community Writer