You can’t stop looking at it! That gorgeous, expensive piece of jewellery on your finger means so much. It’s a token of his love for you and a symbol of your mutual commitment. He spent months learning about diamonds and jewellery, shopping around for the one ring that perfectly reflects your taste and personality.
Now it’s your responsibility to care for it. Yikes! What would happen if your beloved new rock slipped from its setting while you innocently played frisbee at the beach? What if a thief stole it from your dresser? Could it fall out if it were knocked against the kitchen counter?
While one of these events would undoubtedly cause distress, engagement ring insurance can soften the financial blow and restore your ring to its current, beautiful state.
So what are the options for insuring your sparkler? How can you protect against the possibility of losing your diamond? Most people guarantee their jewellery in one of two ways:
Under your contents (or home and contents) insurance policy
With specialised jewellery insurance
Option One: Contents Insurance
Most contents insurance policies provide a level of protection for your engagement ring if it’s lost, accidentally damaged or stolen while it’s within the walls of your home.
That said, some contents policies set a limit on the total amount you can claim for your engagement ring. In many cases, this amount isn’t high enough to cover the cost of a replacement ring.
Emily discovered this the hard way. A burglar swiped her engagement ring during a break-in, so she filed a claim against her contents policy only to learn that her per-item limit was $1,000, hardly enough to replace her $6,000 diamond ring.
If you know that the amount of cover will not sufficiently replace your ring, you may be able to apply for additional protection by specifying the ring on your contents policy. This means working with your insurer to set a higher limit for your ring, typically in exchange for a higher premium. Your contents provider may require you to provide a sales receipt or valuation certificate for your engagement ring.
FAQ About Protecting Your Engagement Ring with Contents Insurance
Will my ring be covered when I wear it outside of my home?
Most standard contents insurance policies do not cover your jewellery when you wear it outside of your home. Therefore, when you’re at work, shopping, going to the gym, watching a film at the theatre--in all of these locations, your engagement ring is at risk.
Some contents policies offer additional “portable contents” insurance, also known as personal effects insurance. Although you have to pay an extra premium, this cover typically provides protection when you’re away from home, anywhere in Australia or New Zealand. Again, however, your ring would be subject to per-item limits.
Does Contents Insurance Cover My Ring When I Travel?
If you add portable contents cover to your policy, your ring will likely be covered within Australia and New Zealand. If you take your engagement ring overseas, however, it will not have protection through your contents insurance.
Option Two: Specialised Jewellery Insurance
For full protection of your engagement ring, specialised jewellery insurance provides a sensible solution. Jewellery insurance carries a higher level of cover than what is on offer from typical contents insurance policies, including the following benefits:
An agreed value policy
Specialised jewellery insurance provides agreed value cover, meaning the insurer will pay the actual amount shown on your policy minus the excess in the event of a loss. Instead of dealing with a cap imposed by the insurer, you always know how much coverage to expect. With an agreed value policy, the insurer will not replace your engagement ring at the lowest price they can buy it for when you submit your claim. Full value is guaranteed.
Additional replacement cover
Sometimes, a ring costs more to replace than its valued amount. This may happen because of changes in the exchange rate or the cost of materials. Specialised engagement ring insurance provides an additional amount on top of the agreed value, up to 25%, to cover the difference.
Free annual revaluation
Jewellery values change over time, depending on the current styles, availability of materials and other factors. With specialised jewellery insurance, you’ll receive a free annual revaluation, so your piece always has adequate cover.
Who wouldn’t want to take their engagement ring on their honeymoon? With engagement ring insurance, you have peace of mind anywhere in the world you choose to travel.
Repair and replacement at your preferred jeweller
After a loss, most people prefer to return to their original jeweller for repairs or replacement. That’s always an option with specialised jewellery cover.
FAQ About Protecting Your Ring with Specialised Jewellery Insurance
How much does engagement ring insurance cost?
The premium for your engagement ring insurance depends upon its value. You can get a free, online estimate here.
My engagement ring came with a warranty. Is this different from insurance?
Yes, Warranty and Insurance are different in several important ways. A warranty protects consumers from manufacturing defects for a limited time. Essentially, it ensures that you receive what you’ve paid for.
Insurance, on the other hand, covers you from accidental damage, theft, and loss. In Australia, most products (including jewellery) are protected by Australian Common Law, which is an implicit warranty guaranteeing quality. If you wear a ring for only a few days before the diamond falls out, the jeweller would be obligated to replace the stone. However, if you dropped your ring on a tile floor and the diamond popped out, you would be responsible for the damage unless you have insurance.
Are there any exceptions to worldwide cover?
With Q Report engagement ring insurance, your ring is covered everywhere in the world except travel to and from Cuba, which is subject to certain restrictions.
Who underwrites the Q Report engagement ring policy?
Chubb Insurance Australia Limited underwrites the Q Report jewellery insurance policy. Chubb is the world’s largest publicly traded property and casualty insurer with operations in 54 countries and territories.
What documentation is required for starting a specialised engagement ring policy?
If you purchase our specialised insurance at the point of sale (from a Q Certified Jeweller), no further documentation is required.
In all other cases, we typically need copies of the following documents:
Receipt of purchase
Photo of jewellery (top and side view)
Diamond / Gemstone certificate (if applicable)
Proof of possession – take a picture of the item in front of a document with today’s date (e.g. a newspaper or receipt)
If you can’t find all of the above documentation, reach out to one of our consultants for assistance.
What happens when it’s time to renew my policy?
As part of the renewal process, your engagement ring will be analysed by our proprietary software and our expert in-house jewellers. They will research any changes to the costs of raw materials and how that might affect the value of your ring in today’s market. We do this revaluation at no charge to you.
Following the revaluation process, you’ll receive an invitation to renew your policy 28 days before the expiration of your cover. At that point, you may decide whether to pay the annual policy amount payable or pay by monthly instalments and be insured for a further 12 months.
How do I file a claim?
If you lose the diamond in your engagement ring, notify us directly as soon as you notice the loss. You can either call us on 1300 882 018 or email us at firstname.lastname@example.org.
We’ll guide you through the next steps and liaise with your jeweller and the underwriter while keeping you updated along the way.
Restoring Your Lost Diamond
Losing the diamond in your engagement ring can be heartbreaking, but when you have specialised jewellery insurance, the heartbreak is temporary. With a phone call or email, you can be on the road to complete restoration of your precious sparkler.