I've lost a diamond in my ring - am I covered under my home insurance?
You could’ve sworn your diamond engagement ring was on the bedside table, but when you rushed home to get it, it wasn’t there. Now you’ve looked high and low and you still can’t find the ring. Not only have you lost a special piece of jewellery that’s steeped in sentimental value, but you’ve also lost an expensive piece of bling. Now, the question is: Will your home insurance cover this loss?
It’s covered, but maybe not the full cost
The good news is that items of value that are lost or damaged are typically covered under your home insurance policy. After paying your deductible, this means you can get the full actual value of the item—good news if the ring diamond ring is expensive.
Thing is, most home insurance policies will cover jewellery, watches, furs and other valuable items, but only up to a combined claim limit. This limit could be as little as $1,000 and the claim is still subject to your policy deductible.
The key is to make sure you have enough coverage for your most valuable items. That means talking to your independent insurance broker before you have to make a claim about getting extra coverage added to your homeowner policy. This may mean a slight increase in your monthly or annual premiums, but it ensures that you’re fully covered for the total loss, should something happen to your precious jewellery.
What if only one diamond out of my ring is lost?
Without additional coverage, your homeowner’s policy probably won’t cover you should you lose a stone out of your ring setting and become damaged or lost. But that doesn’t mean you’re out of luck. By adding extra coverage for your jewellery on your regular homeowner’s policy, you receive a number of benefits, including no deductible and coverage if a stone falls out of your ring’s setting.
The cost for adding extra insurance coverage for your jewellery is quite nominal, typically 1.5% to 2% of the ring’s appraised value. That means on a $5,000 engagement ring, you’d pay an extra $75 to $100 per year for this extra protection.
Before agreeing to insure high-value jewellery items, most insurance companies will request photos and a current appraisal of the piece. This helps to accurately establish the ring’s value. Keep in mind that jewellery tends to appreciate in value over the years, so your insurance company may require an independent appraisal every five years.