By Emily Miller
Valentine’s Day is thought of as the most romantic day of the year, which explains why so many couples get engaged on this day. While there’s no way to insure the sentimental value of such a gift, having the right insurance coverage will provide financial protection, according to the Insurance Information Institute (I.I.I.).
“The word ‘insurance’ is not likely to be the first word on many lovers lips this Valentine’s Day. However, if an expensive gift of jewelry is lost or stolen it can certainly soothe the sting of losing a cherished gift,” said Jeanne M. Salvatore, the I.I.I.’s chief communications officer. “Your first step after receiving a valuable engagement ring – well, maybe your second after saying yes! – should be to call your insurance professional.”
Jewelry losses are among the most frequent of all homeowners content related insurance claims.
Fortunately, the I.I.I. has provided consumers with four easy steps to help ensure adequate protection for your new ring:
Step 1: Content your insurance professional
Contact your insurance professional immediately to figure out if you need additional insurance coverage or not. Most standard homeowners and renters insurance policies include coverage for personal items such as jewelry; however, many policies limit the dollar amount on jewelry to $1,000 to $2,000.
According to The Knot, the average price of an engagement ring costs nearly $6,000. This is where additional coverage will come in handy.
To properly insure jewelry, consider purchasing a floater or an endorsement policy. In most cases, these add-ons to a homeowners or renters policy would also cover you for “mysterious disappearances.” This means that if your ring falls off your finger and is flushed down a drain, or is lost, you would be financially protected. And unlike a homeowners policy, floaters and endorsements carry no deductibles, so there is no out-of-pocket expense to replace the item.
Step 2: Obtain a copy of the receipt
If additional coverage is needed, forward a copy of the receipt to your insurer – so that your coverage has a record of the current value of the ring – and keep a copy for your own records. It’s also a good idea to keep a copy of appraised value of the item.
Step 3: Have it appraised
If your engagement ring is either a heirloom or vintage piece of jewelry, it will need to be appraised for its current dollar value. You can ask your insurance professional to recommend a reputable appraiser. As noted above, keep a copy of the appraisal receipt.
Step 4: Add the item to your home inventory
An up-to-date inventory of your personal possessions can help you purchase the correct amount of insurance and speed up the claims process if you have a loss, so remember to add your new ring to your inventory. If you don’t already have an inventory, now is the best time to create one. The I.I.I. offers a free, online inventory tool called: Know Your Stuff®.
