Author Topic: Engagement Ring Insurance  (Read 6729 times)

WillPen

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Engagement Ring Insurance
« on: October 30, 2013, 05:32:23 PM »
Hello everyone,

My wife's engagement ring and wedding band are insured under a valuable personal property plan to the tune of about $30 to $35 a month. In your opinion, is this a wise decision or a waste of money? While $35 a month in itself isn't much it will certainly add up over the years. On the other hand, losing that dang thing would be a giant punch to the gut. We've been discussing it and kind of waffling around about it.

The only thing I haven't done is shopped this around to find a cheaper price.

Thanks, everyone!

Will

BlueMR2

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Re: Engagement Ring Insurance
« Reply #1 on: October 30, 2013, 05:35:34 PM »
To me, a waste of money, but it might be appropriate for you.  You're definitely losing $35 a month.  Vs.  You *may* lose $x.  In my case, "x" is low enough that I don't care.  We wouldn't replace our rings anyways as neither one of us wear them anymore.  I might remember to put mine on once every couple of months when going to some special event.  Other than that, they're already wasted money.  We should have done a ringless wedding (or at least much cheaper rings).

gimp

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Re: Engagement Ring Insurance
« Reply #2 on: October 30, 2013, 05:38:46 PM »
I know a bunch of photographers who pay around as much. Their policies cover all of their equipment (usually $5000 - 10000) that they are constantly carrying into the field (often literally), dropping into mud and water, getting rained on, and occasionally getting stolen by errant passerby or wedding guests, and so on. All of this hard use is covered. And the policies are used every couple years.

On the other hand, what does your insurance policy cover? It seems that you're far, far less likely to need the policy. It also seems that a ring is far more resistant to damage (or rather, if damaged, it's fixable - whereas electronics are often not).

Can you have the ring covered under home-owner's or renter's insurance?

Also, what's it worth, roughly? You're paying $420 a year for it. Are you paying $420 a year to wear it every single day?

Finally, it just seems odd to insure it like that... it may be expensive, but it's never used for its monetary value, and you're incredibly unlikely to sell it.

beltim

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Re: Engagement Ring Insurance
« Reply #3 on: October 30, 2013, 06:16:53 PM »
Definitely get quotes.  You shouldn't pay more than about 1.5% per year for this type of insurance.

gooki

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Re: Engagement Ring Insurance
« Reply #4 on: October 30, 2013, 06:20:21 PM »
Even with the insurance it's going to be a punch in the gut if you loose it.

I say drop the insurance. Your on MrMM now. If you had to replace it would you really buy such an expensive ring again?

daymare

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Re: Engagement Ring Insurance
« Reply #5 on: October 30, 2013, 06:23:29 PM »
Frankly, it's probably not necessary to have insurance on the ring.  (And that's much nicer than what I first intended to write.)  Insurance on items should be happening only if losing/damaging the item would be financially devastating, ie you're not in a position to replace or go without.  (See: homeowner's insurance)  If the ring was lost it would be possibly devastating, but mostly emotionally, and getting the same kind of ring/style as a replacement wouldn't be the same as having the old one, right?  I think there are some appropriate ring-care measures to take: ie, cleaning it regularly, making sure it's properly sized and won't fall off, but beyond that it's an ornament and it's value is mostly symbolic.  (Maybe I'm wrong and this ring is worth like ... 20K, in which case, eye roll.)

I'm a bit biased -- my engagement ring (which my fiance and I picked out together) was slightly under 1K, and I totally love it and it makes me happy to see it on my hand every day.  BUT I think I felt like I needed a ring because after 4.5 years together, getting 'engaged' was mostly a formality, and I did worry a bit that people would think nothing had changed in our relationship without the ring.  So frankly if I could go back in time I'd just get a simple small band, and wear that.  But my feeling about the ring is that, while I love it, insuring it would be quite silly (unless it cost nothing additional to whatever policy I had on my home, for instance) since what I would lose if I lost it wouldn't be the cost of the ring, but rather the emotional attachment.  And then life would move on, and I would just wear a simple band.

Cyrano

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Re: Engagement Ring Insurance
« Reply #6 on: October 30, 2013, 06:29:30 PM »
If can't afford to replace the ring, it was too expensive in the first place.

catccc

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Re: Engagement Ring Insurance
« Reply #7 on: October 30, 2013, 06:45:35 PM »
Also curious what it is worth.  Is it replacement only or cash value?  My ring has been insured (and I'm not going to renew next year when the policy comes up for renewal) for 6 ish years now, and the premium has been in the neighborhood of $60 a year.  It was appraised at roughly 6K (though purchased for under 3K, and the plan is replacement only, which is cheaper.

I got the insurance because I was totally weirded out about wearing such a valuable piece of jewelry when I first got engaged.  I'm dumping the insurance because if something ever happened to the ring, I would not get a replacement.  I've already spent $360 on insuring it, and it just doesn't seem a good use.  Plus, it is unlikely that anything would ever happen to it, since I nearly always wear it, it's unlikely to get damaged or lost.  For me, the real value of it is sentimental and it is attached to this specific ring, not an identical one that wasn't presented to me on the evening my wonderful DH proposed.

I would ask your wife what she would do if she lost it. Would she want to replace it?

I've heard of people getting replicas of their ring w/ high quality CZs (yes, there is such a thing.  CZs are the most optically identical simulant compared to a diamond.  Moissanite is double refractive and has much higher dispersion than a diamond.  If a CZ is well cut and well polished, they are the best diamond simulant, IMO.  It is harder than an emerald, topaz, garnet, peridot, and many other jewelry quality gemstones.)  Then they wear their replica and put their "real" ring away in a safe deposit box.  Silly, IMO, but for some it works.
« Last Edit: October 30, 2013, 06:47:39 PM by catccc »

jba302

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Re: Engagement Ring Insurance
« Reply #8 on: October 30, 2013, 07:18:23 PM »
I know a bunch of photographers who pay around as much. Their policies cover all of their equipment (usually $5000 - 10000) that they are constantly carrying into the field (often literally), dropping into mud and water, getting rained on, and occasionally getting stolen by errant passerby or wedding guests, and so on. All of this hard use is covered. And the policies are used every couple years.

On the other hand, what does your insurance policy cover? It seems that you're far, far less likely to need the policy. It also seems that a ring is far more resistant to damage (or rather, if damaged, it's fixable - whereas electronics are often not).

Can you have the ring covered under home-owner's or renter's insurance?

Also, what's it worth, roughly? You're paying $420 a year for it. Are you paying $420 a year to wear it every single day?

Finally, it just seems odd to insure it like that... it may be expensive, but it's never used for its monetary value, and you're incredibly unlikely to sell it.

Jewelry is already covered under a normal HO or rental policy but only covers certain risks. This is likely a floater policy due to the price, which covers every potential reason for a loss other than intentional damage. It's somewhere around a 40 year cost on a policy, so this ring was probably around $17k. For a ring that much, I'd probably get it covered.

Having handled property claims in the past, I got a lot of lost diamond claims from the holder things cracking off, and diamonds (especially bigger ones due to more inclusions) seem to chip easier than you would think.

Personally I'd say screw the insurance and buy a cheaper ring in the future, but it would be a kick in the balls to lose that much value without coverage of some sort.

StarryC

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Re: Engagement Ring Insurance
« Reply #9 on: October 30, 2013, 07:26:35 PM »
Crazy idea:  Sell the ring (Or maybe just the diamond, if that is the valuable part).  Buy a very nice replacement ring/ diamond/sapphire/moissonite for $2,000.  Invest the remaining $15,000, and then EARN more than $35 a month in investment returns! 

The insurance is on the financial value, it wouldn't cure any emotional distress of losing the ring.   If the ring was stolen tomorrow, and the insurance paid out the $17,000 would you buy a replacement ring for that amount ASAP, or would you consider buying a cheaper ring and keeping the money? 

smedleyb

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Re: Engagement Ring Insurance
« Reply #10 on: October 30, 2013, 08:13:50 PM »
Crazy idea:  Sell the ring (Or maybe just the diamond, if that is the valuable part).  Buy a very nice replacement ring/ diamond/sapphire/moissonite for $2,000.  Invest the remaining $15,000, and then EARN more than $35 a month in investment returns! 

The insurance is on the financial value, it wouldn't cure any emotional distress of losing the ring.   If the ring was stolen tomorrow, and the insurance paid out the $17,000 would you buy a replacement ring for that amount ASAP, or would you consider buying a cheaper ring and keeping the money?

Unless he bough an impeccable diamond from a reputed diamond merchant at a good price, he'll get soaked on any resale.

To the OP, I say get the insurance (for at least a couple of years) if only for the piece of mind of knowing this ridiculously expensive piece of jewelry is covered.   I insured my wife's ring for 5 years before ditching the coverage.     

 

Charlotte

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Re: Engagement Ring Insurance
« Reply #11 on: October 31, 2013, 05:28:03 AM »
I dropped the insurance on my ring earlier this year. I figure losing it is no different that totaling a car that I only had liability insurance on.

Just my 2 cents....

kt

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Re: Engagement Ring Insurance
« Reply #12 on: October 31, 2013, 05:54:10 AM »
i'm picking up my e-ring this evening and when we ordered the shop tried to upsell us accidental damage insurance. thoughts on this?
5 years insurance costs 1/6th value for the whole duration (i/e/ 1/30th per year). ring cost around $500.
the sales lady said fixing a broken prong on the centre stone would cost as much as the whole insurance premium for the five years.
it has a lot of small diamonds which are apparently more prone to damage.
i love the style but am now feeling highly nervous. thoughts on accidental damage insurance?

dude

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Re: Engagement Ring Insurance
« Reply #13 on: October 31, 2013, 08:29:35 AM »
I cover my wife's ring for about $12.50/month added on to my H62 condo policy.  It's appraised at $21K.  Do I like paying this?  Hell no, but it ain't about me.  If I had my way, we'd sell the thing and invest the cash, but then I probably wouldn't be married for very long after that.

netskyblue

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Re: Engagement Ring Insurance
« Reply #14 on: October 31, 2013, 08:39:36 AM »
i'm picking up my e-ring this evening and when we ordered the shop tried to upsell us accidental damage insurance. thoughts on this?
5 years insurance costs 1/6th value for the whole duration (i/e/ 1/30th per year). ring cost around $500.
the sales lady said fixing a broken prong on the centre stone would cost as much as the whole insurance premium for the five years.
it has a lot of small diamonds which are apparently more prone to damage.
i love the style but am now feeling highly nervous. thoughts on accidental damage insurance?

I'd say never buy insurance from a jewelry store.  Would you buy jewelry at an insurance office? 

In fact, I personally wouldn't insure any piece of jewelry that cost under $1000, unless you have many pieces (even then, not under $500) sitting at your home where they could be stolen. 

I'd rather bank on paying the $50 to fix a broken prong if & when it happens.  Let your money earn YOU interest in the meantime, not them.