Insurance for your Engagement Ring

Home and Contents Insurance

Love is in the air. With Valentine's Day comes a flurry of romantic marriage proposals. Jewellery stores are busy with suitors choosing the most important piece of jewellery in their special someone’s life.

In the excitement of selecting the perfect ring and proposing, many people don’t think about insuring the engagement ring. Sadly, many engagement rings are lost or stolen and not replaced every year because the owner thought they had insurance cover or assumed it would never happen to them. But you don’t need to be Kim Kardashian with a $4 million engagement ring, to find out the importance of insuring your valuables!

Value of Diamond Engagement Rings

Many jewellers will tell you an engagement ring should equal the value of the fiance’s monthly salary, but whatever you spend, it will be a treasured piece that you won’t want to replace. If you have been shopping for diamonds lately you will know that their value is determined by the four C’s - colour, cut, clarity and carat.

Diamonds are graded on a colour scale from D to Z with D being considered colourless and Z being light in colour. Buyers may decide to choose a near colourless diamond around the G-H grade where the colour can’t be seen by the naked eye to reduce the cost of a colourless diamond. Clarity refers to the inclusions inside the diamond and surface defects or blemishes. Coloured diamonds such as pinks and yellows are graded on a separate scale.

The cut of a diamond also plays a big part in determining its sparkle and therefore value. The cut refers to the proportions, symmetry and polish of a diamond and if poorly cut, won’t reflect the light as well.

The carat of a diamond is used to describe the weight of a diamond. For over 100 years there has been an international standard of 200 milligrams, or 1/5 of a gram. Jewellers often describe carats in 1/4 increments.

At the end of the day though, the value of an engagement ring is more about who gave it to you and the love you have for that person. It is more of a personal symbolic value and attachment to the ring rather than the dollar value.

It’s Not Covered

Unfortunately, your standard house and contents insurance doesn't always cover an engagement ring. All jewellery, particularly engagement rings, are designed to leave the house so they need their own valuables or specified item insurance cover. However, you can still make use of your home and contents insurance policy. Simply contact your insurer or broker and ask if you can add the engagement ring to your policy as a specified item. 

Either way, do this before you even pick up the ring from the jewellers. You don’t want to be one of those unfortunate people who lose the ring before they even get a chance to propose or the ring slips off your fiance’s finger before it can be correctly sized.

While you are making changes to your home and contents policy, consider any other valuables you take out of the house such as your laptop and camera and add these items to your policy.  

Keep the Paperwork

You will want to keep the receipt and any other paperwork as evidence of ownership. It’s also best to take a few clear, close-up photos of the ring and keep printed and digital copies of the photos with your paperwork. If the ring is lost or stolen, you may want a jeweller to make a ring as close to the original design as possible for sentimental reasons.

More Information

If you would like more information about insuring your valuables before the big proposal, contact Knightcorp staff on 1300 656 001 or complete our contact form.

Even if you aren’t expecting a proposal, use this Valentine's’ Day or your wedding anniversary as a reminder to have your jewellery valued. If you have had your engagement ring for a decade or more, chances are the value has increased and your insurance policy may need updating.