Does Your Insurance Cover That Ring?

man proposing to woman

Getting engaged? Before you pop the question, make sure you have the right jewellery coverage on your insurance policy.

It’s easy to get caught up in all of the excitement that goes along with buying the perfect ring and planning a romantic proposal, but once you buy the ring it is important to check with your insurance broker to find out if your purchase is protected.

Wait, doesn’t my property policy already cover jewellery?

Most homeowner, condo and tenant policies include some basic coverage for jewellery. However, the protection offered is very broad and the dollar amount and type of loss covered is often limited.  For example, the amount of protection offered to cover theft of jewellery items can be as low as $1,000. In addition, your property policy may not cover some important types of loss, such as the stone falling out of your ring. In most cases, additional coverage is needed to cover more valuable items such as an engagement ring.

Okay, how do I get more coverage?

Depending on your specific needs, you can either increase the coverage for all of your jewellery, or you can cover one specific item, such as a ring by adding an endorsement to your existing home, condo or tenant insurance. Either option will provide better protection for your jewellery than what is available under a standard policy. In addition to providing higher limits, you will also be covered worldwide for more perils, including protection against mysterious disappearance. So guys, don’t worry if your fiancé loses her engagement ring on your honeymoon. (This actually happens a lot more than you may think!)

I don’t have insurance because I live with my parents. What should I do?

This is a common question. As long as you are living with your parents, you can add coverage for the engagement ring on their property insurance policy. But remember, once your soon to be fiancé says ‘yes’ and accepts the ring, she will need to arrange coverage under her policy (or her parent’s policy if she is living at home) and the ring should now be removed from your parent’s policy.

Sounds good, but how much will it cost?

The cost of adding a jewellery endorsement to your policy is based on the company you are insured with and the value of the item(s) you want to insure. In general, the yearly cost to insure your engagement ring is $1.50 to $1.85 for every $100. For example, if the value of your ring was $9,000, you might expect to pay $135 to $167 per year.

Did you know…

The old adage of spending the equivalent of three months salary on an engagement ring was actually created by The De Beers Company?

The average price of an engagement ring in Canada is actually $4000.