Insurance policies are an unavoidable part of our lives, cars, homes, valuables, everything can be covered with some kind of insurance policy.
Items such as diamond rings that carry a lot of sentimental or monetary value are commonly part of those policies. That brings us to our main question of the day: How much does it cost to insure a diamond ring?
Unfortunately, there is no simple answer to this question because differences in price when it comes to insurance policies depend on many factors. Knowing that we composed a list of the most important things to have in mind when looking for perfect diamond ring insurance.
We’ve also added a few interesting facts regarding diamond ring insurance, so keep your eyes peeled for that as well! If you are interested in finding out more about the answer to the main question, keep reading!
Different Types Of Diamond Ring Insurance
The type of insurance policy you go with is the biggest determinant of the price. Here are some of the most popular options:
1. Standard homeowners insurance policy covers jewelry, including losses caused by fire, natural disaster, or theft and vandalism.
The thing is, that policy has a strict 1,500$ limit for jewelry, watches, and precious stones, and in most cases, it is not enough to cover diamond rings.
In certain situations that limit can be raised, for example, for a little bigger premium you can get a limit between 2,500$ and 5,000$. But, even those figures can be insufficient when talking about diamond rings.
Also keep in mind that homeowners insurance only applies to your home, so when traveling, you’ll need additional policies if you plan on taking your diamond ring with you.
2. Personal articles floater can be an option to consider to insure your diamond ring if it exceeds standard homeowners insurance limits.
It’s object-based insurance, with a list of losses that might be excluded, so it’s crucial to know in which situations your insurance applies. The price of the floater is determined for each insured item individually and usually applies internationally.
3. Stand-alone jewelry insurance policy is probably the best, safest, but also the most expensive option. It can be purchased from any insurance company that specializes in insuring jewelry.
It offers the most variety considering level and area of coverage (more of that later), and it carries no effect on your other insurance rates (home insurance, car insurance, etc.)
Value Of The Diamond Ring
One of the most important things to know when insuring a diamond ring is that the value of the ring greatly affects the cost of the insurance.
According to experts in this field, a common practice of many insurance companies is to set the nominal price of your policy to 1% – 3% of the diamond ring value.
Here’s an example: If your ring is worth $10,000 you might expect to pay at least $100 – $300 of insurance premium.
So, how much does it cost to insure a diamond ring?
Sadly, there’s no universal price that we can give you. Instead, it all depends on the value of your ring.
What does this mean, you might ask? It means that you will pay more for insurance for a diamond ring that has a higher price. If you would like to know more about diamond ring price calculations, check out this article here.
The best way to approach this is to get the appraisal of your diamond ring that will account for all the key elements of value, including cut, color, clarity, quality, the number of diamonds on your ring, the craftsmanship of the piece, and most importantly – carat weight.
Shape, stamps, model numbers, and distinctive markings also affect the value of your diamond ring.
Other things to take note of are the origin of the materials used and the current retail prices in the regional market.
Many insurance companies require you to get an appraisal before insuring high-value jewelry (high value usually being defined as more than $5000), while for less pricey pieces receipt from the store should be enough.
Make sure that you take your ring to a reputable appraiser, take note of the individual reviews and recommendations, and also their expertise.
Most of the time the best solution is to find an appraiser that is a member of a national appraisal society and holds at least a graduate degree in gemology.
Keep in mind that diamonds rarely, if ever, lose their value. On the contrary, diamonds have been considered a great investment for a long time, and for a good reason. The value of diamonds is always rising. It is a recommendation to reappraise your diamond ring every 2-3 years for insurance purposes.
Usually, reputable appraisers will retain a copy of your previous appraisal and work from there, rather than starting from scratch, also probably charging you less for the appraisal itself.
It is our recommendation to always bring a copy of your previous appraisal and insurance policy when taking your ring for reappraising, fixing, or adjusting.
Related Read: How To Buy A Diamond Ring Without Getting Duped?
Level Of Insurance Coverage
Level of insurance coverage is also a crucial part of your policy, you must know what kind of things your insurance is protecting you from. There are many situations that can bring your diamond ring at risk, and you should carefully consider whether you need protection for them.
Take note, more coverage most of the time means a bigger price on the insurance premium, that is why you should find the perfect balance between them.
Almost all of the policies cover theft but don’t cover instances of damaging the ring or accidentally losing it. You should take note that some of the insurance policies don’t cover the full value of rare or very expensive pieces.
Also, some of the wear and tear on your diamond ring might not be covered by your insurance, taking you to take care of the repairs at your own expense.
In order to avoid that happening, we suggest learning everything you need to know about diamond ring maintenance as it can prevent additional costs when insuring your diamond ring.
Area Of Insurance Coverage
Similar to the previous topic, the area of insurance coverage is also important to consider. A wider range of area coverage could mean a greater price, and you need to determine if it is worth it for your unique lifestyle and habits.
If you travel a lot and plan to carry the ring with you, it might be a good idea to take a look at some international or regional insurance policies.
Knowing that some places in the world are more dangerous than others and that you might be at risk when traveling, it is no surprise that wider areas of insurance coverage are more expensive.
Well, that depends purely on the insurance company and its rules and prices. It would certainly be a good idea to ask for more detailed information when choosing what policy you want for yourself.
Of course, if you plan on leaving your diamond ring at home during vacations or business trips, this is less of a concern for you, and the standard area of coverage should be enough.
Make sure to know what the boundaries of your insurance policy are and if you can change it in the future if the need for it appears.
Related Read: Does Insurance Cover A Chipped Diamond?
Difference Between Insurance Companies
As in any business, choosing the right company for you might take some time, but it will be worth it in the end.
It would be a good idea to see if any insurance companies you already have premiums with are willing to offer you insurance for your diamond ring as well. Having a good track record with a specific company can greatly impact the price of new premiums.
If you would like to expand beyond the companies you already have insurance in, here is a list we composed to make your decision-making process a little bit easier:
- Best Overall: Jewelers Mutual Insurance Group
- Best for Bundling Policies: GEICO
- Best Coverage With No Deductible: Zillion
- Best for Privacy: Lavalier
- Best for New Jewelry: GemShield
- Best Full Value Coverage: Chubb
- Best Personalized Experience: JIBNA Personal Jewelry Insurance
Make Sure To Ask Important Questions
When you decide to insure your diamond ring, make sure you get your money’s worth.
It’s important to carefully examine every offer, and you shouldn’t be afraid to express your wishes and concerns before signing up for any kind of deal, especially if it includes your diamonds.
The most important things to consider are:
1. What evidence are you required to provide if your ring gets stolen or goes missing?
In case your diamond ring gets stolen, most of the time insurance companies will rely on you to provide evidence of theft. The most important thing in those situations is usually a police report, along with signed witness statements.
On the other hand, if you can’t find your diamond ring, most of the time it is a good idea to retrace your steps, look for it in places it might get misplaced before claiming your insurance.
Be sure to check with your insurance company what your obligations are in a certain situation and to cooperate with company representatives in order to have your problem solved as fast as possible.
2. Where should you look for a new ring if your insurance provides replacement instead of cash payment?
In case your insurance provides replacement instead of cash payment, that probably doesn’t mean that you can replace your diamond ring in any jewelry store in any location.
Keep in mind what store or jewelers your insurance company cooperates with since that might be a determining factor when choosing your premium.
3. Can you choose who will repair your diamond ring if it gets damaged?
It is important to know who will repair your diamond ring if it gets damaged, and it is even more important for you to have a say in it.
You should choose carefully who handles your valuables and check whether the insurance company of your choice allows you to choose, or do they have a specific jeweler, or a list of jewelers they work with.
Always check their qualifications and reviews before letting them handle your precious rock.
Related Read: Can a Chipped Diamond Ring Be Repaired?
4. Will the policy adjust to inflation?
You should look into potential policy adjustments, especially when it’s regarding inflation. It is not worth saving some money now, if it will cost you much more in the long term.
Insurance company representatives should explain all possible changes in your policy in the foreseeable future to you, ensuring you won’t have to look for a new one in a year or two.
Still wondering how much does it cost to insure a diamond ring?
The real answer is: it depends. The price of diamond ring insurance is greatly determined by your choice of the insurance policy.
- If you go with standard homeowners insurance, it is cheaper but more strict concerning the value of the diamond ring and levels of coverage.
- Personal articles floater is a better option for insuring diamond rings, but it does generally cost more. It covers a wider range of coverage levels, and it is international.
- Stand-alone jewelry insurance policy is the best option but also the most expensive one. It is customizable, so you can get coverage in a wide variety of situations and locations if you feel the need to do so.
Lastly, factors like price, value, your personal lifestyle, hobbies and activities, travel frequency, policy coverage levels, and many more are used as calculating tools to determine the price of the premium you will pay.
It is your decision to look for the perfect insurance policy that fits your needs and your budget!
Related Read: Can You Insure A Lab-grown Diamond?