It doesn’t matter if you’re the one buying or the one receiving the ring; engagement ring insurance is an essential step in protecting such a sentimental and oftentimes valuable investment. But do you really need a dedicated policy, or will your existing home insurance policy suffice?
In this article, we’ll lay out your options, explain how home insurance can protect your ring, and help you determine if adding a floater is the best choice for someone in your situation.
Can you get insurance for an engagement ring?
Yes, you can get engagement ring insurance, but you might not need it if you already have insurance for your home, condo, or rental unit. Since most people do, it’s fairly common for Canadians to rely on their existing home or renters insurance for coverage rather than buying a separate dedicated policy. However, there are insurance providers who specialize in insuring high-value jewelry, and some jewellers also offer insurance options or partnerships with specialty insurers.
That said, don’t confuse your jeweller’s protection plan with actual insurance. Protection plans typically cover repairs, maintenance, and defects rather than providing financial reimbursement if your ring is lost, stolen, or damaged beyond repair.
Are engagement rings covered by home insurance?
Engagement rings, like all other pieces of jewellery, are considered personal belongings and are therefore covered by home insurance. They are, however, still subject to your policy’s coverage limits, exclusions, and terms and conditions, so always be sure you understand exactly what’s covered, what’s not, and what could nullify your coverage.
Check your coverage limit for jewellery
Most home insurance policies categorize belongings and assign coverage limits to each. Since engagement rings fall under the jewelry category, it’s important to check your policy’s total coverage limit.
If you own very little jewelry and your ring’s value doesn’t exceed your policy’s limit for this category, your existing coverage may be sufficient. However, if you have a large jewelry collection or your ring alone is worth more than your policy’s limit, adding a floater can ensure its full appraised value is covered in the event of a covered peril.
For example, if you have a $3,000 ring, own little other jewelry, and your homeowner’s insurance has a $5,000 jewelry coverage limit, your policy may provide enough protection. However, if your ring is worth significantly more – say $10,000 – or it holds significant sentimental value, making it nearly impossible to replace, a floater can ensure you receive adequate compensation in case it’s lost, stolen, or damaged by a covered peril.
Review your policy’s list of exclusions
While home insurance typically covers engagement rings against risks like theft or fire, there are always limitations and exclusions to consider. Your policy likely won’t cover:
- Accidental loss or mysterious disappearances
- Damage from normal wear and tear (scratches, loose stones, prongs wearing down)
- Design flaws or craftsmanship issues
- Loss or damage due to owner negligence (ex. stolen from an unlocked car)
- Damage caused by pets (ex. swallowed by a dog)
Should you add your ring to your home insurance policy?
If you believe that your home insurance policy’s jewelry coverage is sufficient, you don’t need to specifically list your ring on your policy. However, it’s still a good idea to take photos of your ring and keep digital copies of any receipts or appraisals for it. That way, if you ever need to file a home insurance claim, you’ll have the necessary proof to support it.
On the other hand, you should add your ring to your home insurance if one (or both!) of the following is true.
- Your engagement ring is worth significantly more than your policy’s coverage limit for jewelry.
- You own a large collection of valuable jewelry that, when combined with your engagement ring, exceeds your policy’s jewelry coverage limit.
Before doing so, it’s important to understand what adding your ring to your home insurance actually means, as it will typically increase your premium.
In these cases, you will be offered what’s called a floater. In insurance, a floater is an add-on that covers a single, high-value item at its full appraised value. This means you are not bound by your policy’s jewelry coverage limit but rather can receive compensation for the full value of the item.
While this added protection may increase your premium, you might be surprised at how affordable it can be to insure your engagement ring through your home insurance provider.
Next steps: Home insurance for up to 29% less
What if you could protect your engagement ring and find a better price on insurance for your home, condo, or rental unit? With YouSet, you can. Not only will our algorithms scan our network of insurers and apply exclusive discounts to find you the best price possible. Plus, you can easily add a floater for your engagement ring and other valuable items, seeing how each change impacts your premium in real-time.