Homeowners insurance blog

He Put a Ring on It, Now You Need to Insure It

The holiday months of November and December account for more than 25% of marriage proposals each year. With 1 in every 4 grooms proposing over the holiday season, that means there are many women with shiny, new sparklers on their left hand. And now that you’ve called and announced the happy news to your family and friends, you’ll want to call and get that diamond insured.

Standard homeowners insurance includes coverage for your personal property. However, there can be limits on coverage for jewelry and other high-value items. Sometimes the maximum value is as little as $1,000. Your new ring easily could blow past that amount, so you’ll need to consider a couple of options.

One is to schedule an endorsement on your policy to protect your ring and other jewelry fully against such problems as theft and fire. The other option is a personal articles floater, which is a separate policy usually sold by a company that specializes in a type of coverage.

Which is the better option?

It depends on your situation. An endorsement typically costs less, but the floater generally offers broader coverage.

For example, we’ve all seen the sitcom plot where the female character drops her beloved ring down the sink or shower drain. We watch both in horror and amusement as the character either tries to fish it out or frantically find a replacement before her significant other notices.

Standard home insurance won’t cover items that you lose – or drop down the drain. An endorsement typically increases limits but not necessarily protection, so you still might not be covered for the diamond dropped down the drain. However, a jewelry floater typically doesn’t have a lot of exclusions from coverage. It often covers lost items even when you don’t know what caused the loss. However, be sure to check the terms of your policy carefully.

Regardless of whether you choose an endorsement or a floater, your carrier likely will ask you have your jewelry appraised. Remember, however, that the value of jewelry can rise or fall over time, so it’s a good idea to revisit coverage annually.

Getting engaged is an exciting time in life. You’ll want to stop and take time to enjoy the moment with family and friends. You may even be anxious to start planning the wedding. But just remember not to get so caught up in everything that you forget to insure the special piece of jewelry you’ll wear for the rest of your life.