Should I insure my engagement ring?

Planning what insurance you need for your engagement ring doesn’t exactly compare to planning your honeymoon. But if your ring goes for a swim whilst you’re honeymooning in Mauritius and you’re not insured, there could be a few tears – and not the happy sort.
Here’s what you need to know:

You can insure your ring under home contents insurance

The best way to insure an engagement ring is to specify it under your home contents policy to make sure that it’s covered for theft, accidental loss or damage. This will mean you are covered for the replacement value of your ring minus the excess (the upfront amount you contribute if you have a claim).

Just double check it’s also covered for when you wear the ring away from home or when you travel with it overseas.

According to a poll, 42% of South Africans spend less than R12 000 on an engagement ring.

BusinessTech poll, 2016, results inflated to 2020 using CPI

If this includes you, with Naked you are covered for up to R5 000 without specifying your ring under your home contents policy. But if your ring is worth more than R5 000, all you need to do is specify it under ‘items over R5 000’ in the app.

Another option is to buy specific single item insurance for your engagement ring

If you don’t have a home contents policy, you can buy your engagement ring its own insurance policy to cover the replacement value. Buying a specific policy for your ring will also usually cover you for when you leave home and travel overseas.

You can check out our Single Items cover where you can buy cover for your new sparking friend with just a few taps. The beauty of Naked is that you can do it whilst you're waiting for your ring to be polished and wrapped up at the jeweller!

Remember, if you go this route and you do have a home contents policy, and there is a single event where your home is broken into and your engagement ring is stolen along with other personal belongings, you will have to pay two separate excesses for the two different policies.

Whatever route you take, make sure you know what you are covered for

Different insurers might use different words to describe what they do and don’t cover. But your policy will generally cover your ring against theft, loss, fires, floods and accidental damage.

For your ring to be covered when you’re not wearing it, you need to keep it safe

Most insurers won’t cover you if you leave your ring in plain sight in an unattended vehicle, your ring falls out your back pocket whilst skydiving or it goes bye-bye forever because a toddler thought it looked like a cool thing to throw.

Some insurers even have what they call a safe clause. This requires you to keep the ring in a safe when you are not wearing it. So if you leave it on your dressing table and it is stolen, you won’t be covered.

Your ring is also unlikely to be covered for any loss or damage caused by wear and tear from ordinary day-to-day use

For instance, if you notice something is wrong with your ring – like your diamonds feel a little loose – and you do nothing about it, you won’t have cover if the stones fall out. To make sure things like this never happen, there are many resources out there to help.

Some insurance companies require you to repair or replace your ring at certain jewellers

A lot of insurers might have a set of jewellers that they use for repairs or replacements. Ask them what their specific procedure is when it comes to claiming for a repair or loss, i.e., can the ring be replaced or repaired by the specific jeweller that designed your ring?

This may also apply to sets of rings. Ask your insurer how they handle claims if only one ring of the set is damaged or lost – they might replace or repair the damaged one only.

Most insurers will still cover the ring even if you’re not the one wearing it all the time – given that it’s specified

This means your fiancée is still covered for theft and accidental loss or damage even if you are the one paying the monthly premium. But to be 120% sure, pop your insurer a message to see what their policy is regarding spouses.

Always insure your ring for its replacement value – keep in mind that a ring’s value can change with time

If you’ve recently bought the ring, you should’ve received an appraisal with it

When buying a ring, an appraisal or valuation certificate should come with your receipt. The certificate usually includes details about the ring: carat weight, cut, clarity, colour, and the metal it’s set in. Be sure to ask your jeweller for this and keep it in a safe place in case something happens to your ring.

The value on this certificate is what you should insure your ring for. It’s also important to let your insurer know if you had your ring designed or if it’s one of a kind. Give the details of the ring and who the jeweller and designer are.

If you’ve had your ring for while but haven’t thought about insuring it until now, have an appraisal or valuation done

The value of your ring may be different now from when you bought it, as it tends to increase with time. We suggest having it appraised every few years. Take your original appraisal with you when having a new one done, otherwise the jeweller might charge you to test all the properties again.

Bottom line: insure your ring for its replacement value. This means that you can replace it with a NEW, similar ring of the same quality.

Ask your insurer what documents they need to insure your ring

To have your ring covered, you’ll usually need to send proof of its value. This is usually in the form of the most recent appraisal you had done on your ring, and most insurers require it to be less than five years old.

Choose an excess that you can afford

When buying insurance, you’ll need to decide on an excess amount. The excess is the minimum amount that you contribute upfront if you have a claim.

For example, let’s say your R20 000 ring was stolen and your excess was R5 000. Your insurance company would pay R15 000 and you will pay R5 000.

The higher your excess, the lower your insurance premium will be, and vice versa.

How do you choose the right excess?

The easiest way to calculate the right excess for you, is to determine the amount you can comfortably afford to pay if and when you need to claim. This means you’ll avoid getting into trouble when it comes to claiming, while minimising the amount you have to pay for insurance.

They might say ‘a diamond is forever’, but not if it’s stolen or lost. Explore your options for making sure your ring is covered adequately.

See how much you can save by getting a quote for your sparkler on the Naked app – it only takes 90 seconds!