What It Is Questions to Ask When you're getting your coverage, be sure to go over the following points:
Ring insurance is best purchased as an extension (also called a "rider"), which is basically an addition to your renters or homeowners insurance policy. You'll need to provide your receipts as well as an appraisal from a certified gemologist. Another option? Insuring your ring through a company that specializes in jewelry insurance, which might offer more coverage than a standard homeowners' policy (replacing a lost or stolen ring rather than paying a set amount of cash, for instance).
- Is the ring covered if you lose it accidentally, or only if it's stolen?
- How will the company replace the ring -- with a check? Or will they require you to purchase a replacement through a specified jeweler?
- What if it's 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 make a claim?
- Are there any circumstances that aren't covered? (What if your ring flies off at the circus and gets trampled by elephants, for example?)
The yearly cost to insure your ring is $1 to $2 for every $100 that it would cost to replace. In plain English, this means that if your ring would cost $9,000 to replace, you might expect to pay between $90 and $180 per year to insure it -- or slightly more in cities where the risk of theft is higher.
Buy a vault or safe to keep jewelry in when it's not being worn (keep paperwork like appraisals in the safe too).
What to Remember
When you shop for a rider policy, make sure to read the fine print: A good policy will cover every potentially ring-threatening situation -- from theft to damage to accidentally dropping it in the garbage disposal. Also, check with your jeweler to see if they work with an insurance company to offer ring insurance. These kinds of policies can vary widely company by company, so make sure to ask specific questions about the level of coverage.
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