My husband and I recently celebrated our wedding anniversary, and throughout the course of the night we talked a little bit about dating and his proposal. The conversation turned towards what he went through when he was shopping for my ring.
When we first got engaged, I hadn’t realized my husband had gone to so much effort to find me a ring he knew I would like. The whole conversation got me wondering if my wedding ring might be worth more than I realized…and, of course, whether that meant I should insure it!
When Do Rings Require Separate Coverage?
One of the first issues I encountered during my research was whether wedding rings are covered under homeowners’ insurance policies, or whether they require specific extra protection. While most standard homeowners’ policies offer some degree of protection for valuables like wedding rings, there are specific situations in which it’s probably a better idea to purchase expanded coverage.
First, some policies don’t necessarily allow the policyholder to submit a claim for a single, specific item. For example, if you lose your wedding ring (God forbid), some insurance companies might tell you that you’re not eligible to make a claim for that specific loss under the general terms of my policy agreement. Closing that coverage gap requires a special type of insurance extension.
Second, policies with deductibles can pose a problem, depending on the value of the wedding ring. For example, if a ring is worth $4,000 but the policy has a $1,000 deductible, the insurance company will pay out a maximum of $3,000 if the ring is lost, stolen or somehow destroyed. That is only 75 percent of its value, which leaves policyholders on the hook for the extra thousand dollars. To solve this problem, you could buy an optional exemption from the deductible for the wedding ring, essentially altering the policy so that the deductible does not apply if something were to happen to your ring.
Finally, certain categories of valuables may be subject to limits and exceptions in the homeowners’ insurance policy. For example, a policy might provide protection for valuables up to 50 percent of the home’s market value, but jewellery might be subject to a $5,000 limit within that 50 percent cap. If my wedding ring was worth more than $5,000 (and it is, thank you very much to my wonderful hubby), I wouldn’t be eligible for more than the maximum reimbursement allowed under the policy limit.
Questions to Ask the Insurance Provider
After doing all this research, I decided to find out whether or not my ring was covered for its full value. Some further digging led to a list of questions I asked my insurance provider:
- Does the policy provide protection for accidental loss, or is the ring only covered if it is stolen or destroyed? Are there any circumstances under which the policy could be invalidated or rejected?
- If I have a claim approved, will the insurance company compensate me via cheque, or will I have to submit a receipt from a jeweller who sold me a replacement ring?
- Is the full replacement value of the ring covered by the policy?
- What forms of documentation do I need to have to prove the ring is worth the amount I’m insuring it for?
What forms of proof does the insurance company require in order for me to qualify for a reimbursement if the ring is lost, stolen, damaged or destroyed?
As I learned when my daughter had her laptop stolen, specifics really matter when it comes to homeowners’ insurance. Since I firmly believe it’s always better to be safe than sorry, I elected to get my wedding ring specially covered under our homeowners’ insurance policy for its full value, regardless of the circumstances of loss, with a deductible exception ensuring I am eligible to be reimbursed for its full value.
InsureMy Wedding Ring!
I’ve been dealing with InsureMy for all my home, property and auto insurance needs for over a year now. InsureMy is a progressive company offering a lot more customization and flexibility options than most standard insurance providers, and is available to residents of Alberta and Ontario.
