For couples embarking on a new life together, the journey is often filled with great excitement and anticipation. That is why engagement rings are considered cherished keepsakes. However, like all jewelry, engagement rings are at risk of damage, loss, and gem displacement. That is why many couples opt to purchase an engagement ring insurance policy if an unforeseen loss occurs.

Insurance Policies for Engagement and Other Expensive Fine Jewelry Rings

Insurance policies for expensive jewelry, including engagement rings and other expensive fine jewelry, are known as Valuable Personal Property (VPP) Insurance. These policies can be purchased at some fine jewelers at the time of purchase or separately later. They cover a wide range of potential scenarios that can result in loss or damage.

Understanding Valuable Personal Property Insurance Policy Basics

Valuable Personal Property Insurance is also known as engagement ring insurance. However, the policy name can be confusing because it often covers more than just engagement and fine jewelry rings. Other items that these policies can cover include:

  • All Types of Fine Jewelry Earrings
  • Heirloom Jewelry
  • All Types of Fine Jewelry Necklaces and Bracelets
  • High-End Watches, Including Smartwatches

These policies allow people to choose whether to cover a single item or an entire collection of jewelry pieces. Prices for coverage vary, with some single-item policies starting as low as a few dollars a month to much higher premiums depending on the items being covered. The policies also allow for coverage of other items, including musical instruments, cameras, and even firearms and antique guns.

The Five Most Important Policy Coverages For Engagement Rings and Fine Jewelry

Each policy varies depending on the carrier, the policy outline, the value of the jewelry, and how the jewelry piece is kept and maintained. General fine jewelry and engagement ring insurance policies usually cover the following:

  • Gem or Fine Metal {Gold, Sterling Silver, and Platinum) Damage or Breakage
  • Lost or Misplaced Jewelry Pieces and Displaced Gemstones
  • Theft
  • Fire
  • Cataclysms and Weather Disasters

Defining The Coverage

Each of these five risk-of-loss scenarios is considered basic coverage for expensive engagement rings and fine jewelry and usually allows for coverage of either damage or breakage.

When it comes to lost jewelry, settings are also usually covered so that if a gem is lost and the rest of the jewelry item is intact, the gemstone(s) replacement is covered. This is essential for engagement rings which often feature expensive high-end gemstones.

Other risks, such as weather calamities, fire, and theft, are substantial concerns for all high-end jewelry owners and are part of the essential coverage offered in most Valuable Personal Property Insurance Policies.

What To Ask For When Purchasing a Valuable Personal Property Insurance Policy

Delving into the details before purchasing is wise when working with an agent. Aside from outlining what type of damage or loss scenarios are covered in the policy, buyers should know how much value is assigned for each item so that when a claim is filed, they know what to expect.

It is also imperative to verify what type of jewelry appraisal the insurer needs to certify the value of each item for the policy to be in effect. Policy buyers are encouraged to inquire about all deductibles and whether riders or add-on coverages are available if the general coverages are insufficient for the insured items.

Types of Engagement Ring And Jewelry Policy Coverage Packages

There are two basic types of policies for jewelry.” The first is a “Blanket Policy.” In general, this policy covers a single jewelry item that is valued up to $2,500 or a collection of fine jewelry items up to $10,000.

For items that do not fit this criterion and other special high-end personal property items, the policy needs to be a designated catered policy known as a “Scheduled Policy.”

A scheduled policy is for specialty jewelry items over the $2,500 threshold. This type of policy is usually designed for large gemstone engagement rings, custom-made fine jewelry, and heirloom pieces. The policy requires a detailed description of the jewelry item and usually requires a certified appraisal. Policy buyers should ensure that the person appraising their jewelry is a certified jewelry appraiser and that they offer an accredited statement of value.