Several years ago, my wife’s wedding ring came up missing. It isn’t very often that she takes the ring off. On the rare occasion she does remove it, she always puts it in a safe place in her jewelry box. She recalled the night before we were doing some house cleaning that she put the ring in her “safe place” and now it’s missing.
Upon inspection of her jewelry box she realized that our youngest son must have been in it and her jewelry was scattered about. After a thorough search all the items were account for EXCEPT her diamond wedding ring. Panic set in and my youngest was interrogated as to what had happened.
Then the million-dollar (several thousand dollar) question was asked of me, will our homeowners insurance policy cover the replacement cost of the ring? Well, jewelry is considered personal property and covered under your homeowner’s policy for “named” perils. However, it’s not covered for being lost or for mysterious disappearance unless it’s endorsed. Luckily for me (and my son) the ring was found wedged between a shelf and the wall in our bathroom closet.
The cost to insure by endorsing a piece of jewelry on your homeowner’s policy runs about 1% of the value of the item. Endorsed a $2500 diamond ring would cost about $25 per year with a $0 deductible to insure.
You’ve probably heard the “Rule of Thumb” about spending two months of your income when buying an Engagement ring. Some might have spent a lot more and other not that much. While opinions on how much to spend vary, one thing is for sure, diamonds are a girl’s best friend and they’re expensive.
If you would like to know more about your homeowner’s insurance policy and the limits of your coverage feel free to contact me for an Insurance review. I’m here to translate insurance to English for you.
Bryan McCarty
Trusted Insurance Advisor