How to insure an engagement ring before and after the proposal
This article was originally published in March 2020 and has been updated.
Getting engaged can be one of the most memorable experiences in your life, but it may also be one of the most expensive. Those big gleaming rocks don’t come cheap. In fact, Aussies spend an average of over $5,000 when buying an engagement ring1.
So if you or your partner lose your sparkler during the proposal, or it gets stolen, you’ll most likely want to replace it.
So, what’s the best way to protect an engagement ring against loss, theft and damage before and after the proposal? It depends on its value and what kind of cover you need.
When should an engagement ring be insured?
You or your partner can insure an engagement ring any time after it’s been purchased.
But, with an object so tiny and expensive, you might want protection from the moment it leaves the jeweller’s shop and before it’s fitted on its intended finger. If that’s the case, the best person to insure the engagement ring is usually whoever has it in their possession first.
How do I get insurance for my engagement ring?
The first step is understanding its replacement value. If you’re unsure you could get the engagement ring assessed by a professional valuer, or if the ring is new, this may have been part of the purchasing process. Keep things like receipts and valuation certificates safe because you may need to prove the ring’s ownership, and its value, when insuring it and making a claim.
The next step is to decide the type of insurance you need. A common and handy way to protect jewellery is through home insurance. Think about where you’ll need it covered and what you’d like it covered for, as you may have policy options to choose from like accidental damage or portable contents cover for items away from your home.
Are engagement rings covered under contents insurance?
Contents insurance (or home insurance, with contents cover) policies can provide a level of cover for ‘insured events,’ for example, if the engagement ring is stolen from your home. Insured events can be different from policy to policy, so be sure to check the product’s Product Disclosure Statement (PDS).
It’s also important to remember the standard level of cover may not be enough to replace your ring. That’s because contents policies can have a set dollar limit per item or on the total amount you can claim for jewellery. If this is the case, you might be able to insure it for a higher amount by listing it with your insurer as a specified item on your policy.
Check what you’re covered for and what cover is available to you, as you may also have optional upgrades to choose from to protect it from things like accidental loss or damage.
How do I cover an engagement ring outside the house, at work and while travelling?
Home insurance may not cover an engagement ring away from home. That means it may not be covered if it gets lost during a picnic proposal, goes missing while you’re showing it off at a celebration dinner or if it slips off in the surf.
To cover the engagement ring while it’s outside the home, you might need to consider portable contents coverage. This type of insurance can often be added to your home or contents policy and can provide cover for accidental loss or damage to items you take out of the home anywhere in Australia, or in some cases worldwide (like with QBE portable contents cover) for you and your family.
Again, this cover can have limits or exclusions, and some of these might require you to list items beyond a certain amount, so make sure you check the product’s PDS.
So, do I need to list an engagement ring on my home insurance?
It depends. Check the PDS if your engagement ring needs to be listed as a specified item and any policy limits. For example, if your $6,000 diamond engagement ring is stolen and it’s not listed, you may only be covered for up to $2,500.
To increase a policy limit by listing an item may mean a premium increase, but it can cover your ring for its full value if you need to replace it (less any applicable excesses).
How much is insurance on an engagement ring?
Insuring the ring through a home and contents policy can be more affordable than specialised insurance.
The price you pay can depend on a number of factors, and the cover you choose, as well as how much the ring is insured for.
Who should insure the ring?
Home and contents policies can provide cover for both the policyholder and their spouse or partner if you both live at the same address. That means if you live together and have a policy, you’ll both be able to use coverage that applies to your ring under your policy
If you don’t live together the ring should be insured by the policyholder that’s in possession of the ring. This means you’ll likely need to review coverage and listing requirements after your proposal.
Keep in mind taking out insurance or making updates to your policy will mean your insurer will send you documentation to confirm your cover. So, if your partner is also likely to receive the updated documentation and it’s a surprise engagement, have a chat with your insurer about your plans to keep it a surprise!!
What should I consider when insuring my engagement ring?
- What are the replacement limits for jewellery under these policies? Are they enough for me to replace my engagement ring?
- Can I list the ring as a specific item under contents insurance so that I can cover its full value?
- Will portable contents coverage protect the ring outside the home? Does it need to be listed as a specific item?
- What is the ring covered for? Does it include cover for accidental loss or damage?
- Can I get the ring replaced or fixed at any jeweller I want?
- What can I do if the cost to replace the ring is more than the policy limit or agreed replacement value?
- What proof do I need to support a claim if I need my ring replaced or fixed?