Q Dear Sherri: I am getting ready to pop the question and have already purchased an engagement ring. Does my Homeowner’s policy cover the ring?
A How exciting and romantic. Let me start with a BIG congratulations! Most Homeowner’s policies cover jewelry on-premises for limited perils, which means causes of loss. However, there is a limit on the overall amount and a limit for each individual piece of jewelry. I’m sure (I hope, for your sake) that your engagement ring is way over that individual limit.
The best way to properly insure an engagement ring is to purchase an Inland Marine Policy or add a “Floater” to your existing Homeowner’s policy. To do this, you will need an appraisal giving a detailed description of the ring and its value. Since yours is a very recent purchase, you can use your receipt as long as the receipt provides a detailed description of the ring and the correct replacement cost value.
Some of the nice features of an Inland Marine Policy are that it is “Special Risk” coverage, meaning that if the peril or cause of loss is not specifically excluded by the policy; it’s covered! Also, you will have world-wide coverage, which may be important for that special honeymoon (don’t go cheap on us!) and usually a deductible is not applied if there is a loss.