Engagement rings are often a significant investment and symbolize a promise of lifelong commitment. As such, it's important to make sure they're protected against potential risks. An engagement ring warranty or a jewelry insurance policy can provide much-needed peace of mind.
In this article, we discuss the differences between engagement ring warranties and insurance policies, exploring their coverage and benefits to help you decide which option best suits your needs.
An engagement ring warranty is a service plan that primarily covers manufacturing defects and certain types of minor damage. Some jewelry brands and stores offer limited-time or lifetime warranties with your engagement ring purchase, but you often have to buy the warranty separately if you want extended protection.
Every engagement ring warranty is slightly different. However, most warranties provide coverage for manufacturing defects and flaws, as well as limited coverage for minor damage caused by the owner. Here are some of the things that are typically covered under many engagement ring warranty plans:
Before you purchase an engagement ring warranty, it’s important to understand what’s not covered by the plan. For example, most warranties will not cover lost stones, missing prongs, normal wear and tear, ring cleaning, and discoloration.
In addition, there may be requirements for the work to be covered under warranty. For instance, some warranties require that the work be completed by the jewelry store that sold you the ring. There are also warranties that will only cover the work if you’re the original owner of the engagement ring.
Engagement ring warranties also tend to have a limited window of coverage. For example, your ring might only be covered for one year after purchase. Once the warranty expires, your engagement ring is no longer protected if something happens.
Engagement ring insurance is a comprehensive policy that covers your ring against unforeseen risks, like theft and loss. If something happens to your engagement ring, you can file a claim with your insurance company to have the item repaired or replaced.
Engagement ring insurance protects your ring for as long as the policy is active. Unlike some warranties, the coverage never expires.
Engagement ring insurance provides coverage for a variety of losses. Most engagement ring insurance policies are “all-risk” policies, which means your ring is covered against any loss that is not explicitly excluded from your policy. Here are some of the things that are usually covered:
In the event of a covered loss, most engagement ring insurance policies will cover your ring up to its appraised value. So, if your engagement ring is valued at $3,000 and it gets stolen, your insurance company would reimburse you $3,000 to replace the ring.
If you already have a homeowners insurance or renters insurance policy, your engagement ring may be covered under your personal property coverage. However, you probably have less coverage for valuable items than you think.
Standard home and renters insurance policies provide limited coverage for expensive items, like engagement rings, electronics, and collections. If the value of your engagement ring exceeds your policy limits, you don’t have sufficient coverage in the event of a loss, like a break-in or a house fire.
Purchasing a separate engagement ring insurance policy ensures your ring is protected, up to its appraised value. Best of all, the cost of engagement ring insurance is pretty affordable, so it won’t add much to your existing insurance premiums.
Most engagement ring insurance policies cost between 1-2% of the appraised value of the ring per year. So, a $2,000 engagement ring could cost only $20 per year to insure, which is less than $2 per month.
If you’re choosing between an engagement ring warranty and an engagement ring insurance policy, it’s important to understand how they differ. You might find that one plan is better for your needs than another.
Simply put, an engagement ring warranty mainly covers manufacturing defects and flaws, whereas an engagement ring insurance policy covers most risks that ring owners and wearers might face, like theft and mysterious disappearance. Some engagement ring insurance policies also cover basic maintenance, but it depends on the plan.
If something unexpected happens, like your engagement ring falling off in the ocean, your engagement ring insurance company reimburses you for the cost of a new one. Without insurance, you would have to pay for a new ring entirely out-of-pocket. In this situation, an engagement ring warranty would not provide any protection for the lost item.
An engagement ring warranty and an engagement ring insurance policy can both be good options, depending on your needs. However, an engagement ring insurance policy will provide much broader coverage, and therefore, is often a better investment.
Even if you’re careful with your ring, you never know when something unexpected will occur. What would happen if you lost your engagement ring on vacation? Could you afford to replace it with another one? In this situation, an engagement ring insurance policy would reimburse you for a new ring, based on the value of your original one.
The low cost of engagement ring insurance is another reason to purchase a policy. Engagement ring insurance is more affordable than many other types of insurance, even if you have a large collection of pieces. For just a few dollars per month, you can rest assured that your engagement ring is protected against potential risks.
Join Oyster today to learn how you can be properly protected from the unexpected things in life.