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Is Your Jewelry Covered in Your Home Insurance Policy?

Is Your Jewelry Covered in Your Home Insurance Policy?
That’s quite an engagement ring, is it covered? 

“I just bought my girlfriend an engagement ring how can I insure it?” 

This is an occasional insurance related question, and it's a bit more complicated than one may first think because it deals with quite a few issues all at once.  

The first question is; who owns the ring? In the insurance world, the person who would normally insure an item is the owner of that item. So when we look at an engagement ring, traditionally the soon-to-be groom buys the ring and then presents it to the soon-to-be bride. If she says “yes” then they start planning a wedding. For insurance purposes, when the soon-to-be groom buys the ring it is his property (assuming they didn’t buy it together) and the ring is his responsibility to insure. He then offers the ring to his soon-to-be bride and if she accepts the ring becomes hers in exchange for her promise to marry him. At this point, the ring is her property and it is up to her to insure the ring. Of course, this is the traditional way two people get engaged; these days there are all sorts of different scenarios! 

The point is that owner of the ring is the one to insure it and since the female usually wears it, she is usually the owner.  

The second question that must be answered is; do I have enough coverage on my policy to fully insure this new ring? Most home or renter insurance policies will cover jewelry up to $5,000 or $6,000 only. If a person is insuring a ring that is worth $12,000 then they should add extra coverage to their policy.  

If you have any questions about insuring jewelry, please don't hesitate to give us a call 519-736-8228. Then, if someone says, "That’s quite an engagement ring, is it covered?" You'll be confident in your answer!