Understanding Engagement Ring Insurance

Are you thinking about getting engagement ring insurance, but not sure where to start? Here's what you need to know about understanding engagement ring insurance:

What is engagement ring insurance?

Engagement ring insurance is a specialized insurance policy that provides comprehensive coverage against unforeseen scenarios specific to engagement rings. Coverages include theft, loss, accidental damage, and mysterious disappearance - and are typically neglected by your standard homeowners or renters insurance.

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Is my engagement ring worth insuring?

Depending on the engagement items you own, it's typically recommended to have insurance to protect against unforeseen accidents. Ring insurance provides peace of mind in case your engagement ring is broken, stolen, or lost.

At Oyster, we specialize in insuring engagement rings and diamond rings of all shapes, sizes, and values and our low minimum annual premium of $25 (just $2/month) means that protecting items you may not normally think of becomes affordable.

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I have homeowners or renters insurance, do I still need engagement ring insurance?

Coverage for engagement or wedding rings under a homeowners or renters policy is typically very limited and very restrictive.

• Accidental damage is often not covered and theft is covered up to a relatively low limit, such as $1,500

• Mysterious disappearance is the most common cause of jewelry loss (i.e. you left it the hotel or at the restaurant) and this is very unlikely to be covered under a homeowners policy

• Deductible limitations are likely to apply and may be subject to the same deductible as your overall homeowners or renters policy (which is often $1,000), meaning that in a case of loss or damage, your actual protection may be well below the cost to replace or repair your jewelry.

Other key drawbacks include the fact that any claims can affect your homeowner premiums and there is limited control over the repair or replacement service. Specialized jewelry insurance is important to ensure you are protected if your valuable items are lost or stolen. 

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How much does engagement ring insurance cost?

Policies with Oyster typically cost 1-2% of the value of the item per year. This means that a $5,000 ring could cost only $50 per year to insure, or only $4 per month. Protecting your valuable engagement ring could be cheaper than one coffee a month.

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Do I need an appraisal?

It is generally a good idea to get an appraisal for your engagement ring. An appraisal is an expert evaluation of the value of your jewelry, including factors like the quality of the materials and craftsmanship, as well as any unique characteristics of the piece. 

Having an appraisal is important because it ensures that you have sufficient coverage for your ring. Without an appraisal, you may not know the full value of your jewelry and could end up with a policy that doesn't fully cover your losses in the event of a claim. An appraisal also provides documentation of the value of your jewelry, which is likely to be needed in the event of a claim.

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What is a deductible?

A deductible is an amount that will be subtracted from any future claims payout (i.e. it is your contribution to the payout of the claim). In general, a lower deductible means a higher monthly premium and vice versa. With Oyster, our default deductible is $0 but we also offer different options in case you want to reduce your premium.

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‍What is a premium?

The premium is the cost of your insurance policy. You pay this figure regardless of whether you file a claim or not, and unlike homeowners and renters insurance, your premium will not increase if you do need to file a claim.

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What information do I need for a claim?

We only need a few pieces of information to get the claim started. These include some basic contact information (if we don't already have it) and your policy number. We will also need some information about the incident, such as the date you became aware of the issue, the item involved and a brief description of the circumstances.

This is all we need to get the ball rolling. We may need additional information during the process, but the claims team will let you know if anything else is needed. Additional information could include photos of the item (e.g. if damaged), appraisals, purchase receipts, or a police report in a theft case.

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Final thoughts

Engagement ring insurance is a type of insurance that protects your ring in case of loss, damage, or theft. It's important to consider the value of your ring, your existing insurance coverage, and the cost of insurance when deciding whether to purchase a policy. To learn more about how Oyster can help you stay protected, check out our jewelry insurance for details.