Monday, January 4, 2010

Be Safe: Insure Your Wedding Jewelry

Happy Monday Budget Brides!!!


Can you believe that today is the first Monday of 2010? Now that the holidays are over we have to get back to the business of ALL THINGS WEDDING. Many of you are continued readers of this blog; however, some are you are new. Welcome!!! So I wanted to start the new year off discussing insurance. Getting engagement ring insurance is so important to the wedding planning process.

We all know that we live in a world where caterers are always on time, flowers are never damaged and thieves never break into our homes...... Sike!!!

It is for all these reasons and a thousand more that you should insure your wedding jewelry.

Engagement & Wedding Ring Insurance

Q. What is engagement/wedding ring insurance?

A. Engagement/Wedding Ring Insurance is insurance to cover you in case of theft, damage or lost that can occur.

Q. What does this insurance cover?

A. You should want your insurance to cover damage, lost, theft and mysterious disappearance.

Q. If my jewelry becomes damaged, lost, or stolen will the insurance policy replace or repair my jewelry?

A. Depending on the jewelry insurance company that you choose, some companies will replace or repair your damaged, lost or stolen jewelry.

Note: In replacing or repairing your jewelry some insurance companies will only repair jewelry to the condition that it was originally and will only replace your jewelry to the likeness and quality that it was originally.

Q. I already have homeowners' or renter's insurance should I purchase jewelry/ring insurance?

A. I would suggest that you call your insurance company and request reading materials for adding jewelry/engagement insurance to your policy. I would also contact a couple of jewelry/engagement ring insurance companies for reading materials. Compare your findings and determine which is best for your individual situation.

Note: No one can tell you what type of insurance you should acquire. Everyone has different circumstances and situations. It is best to obtain all the information possible and make an informed decision. Homeowners insurance usually covers up to $1,000 of your jewelry lost while renter's insurance usually covers up to $500.

Q. Typically, how much is jewelry/engagement ring insurance?

A. According to my research, jewelry/engagement ring insurance cost about 1.25% - 1.75% of the appraised value of the ring each year.

Note: If your ring cost $15,000 then your insurance cost will be between $187.50 - $262.50.

Here are some questions The Knot advises you to ask before committing to an insurance policy:

Is the ring covered if you lose it accidentally, or only if it's stolen?

How will the company replace the ring? By check or will they require you to obtain a replacement through a specific jeweler?

What if it is a vintage ring or other unique piece? How will the quality and size of your diamond, and that of a replacement if needed, be documented?

Is the ring insured to full cost or a fraction of it?

How will you need to prove the ring vanished if you need to prove a claim?

Are there any circumstances that are not covered under the policy?

Jewelry/Engagement Ring Insurance Companies

Jewelers Mutual - Specializes in personal and retailer insurance coverage. Jewelers Mutual offers repair and replacement coverage. All jewelry must be appraised before the application is approved. Policy is not available for unset stones, antique jewelry and previously damaged items.

The Chubb Group - Specializes in a few different types of insurances; however, they have policies for jewelry specifically. You can obtain a policy through independent insurance agents or jewelry retailers. The Chubb Group recommends jewelry appraisals for all jewelry but only recommends jewelry appraisals for items worth $50,000 or more. Coverage does not include loose diamonds.

Sources include About.com, Jewelers Mutual, The Chubb Group and The Knot

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1 comment:

Bicoastal Bride said...

Great advice! Insurance is so important, but a lot of people overlook it.

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