Do I need engagement ring insurance?

For many people, after a house and car, an engagement ring represents the third biggest investment that they will make in their lives. With the old tradition of ‘two months’ salary’ often causing a ring to be worth many thousands of dollars, the cost of the ring being lost, stolen or damaged beyond repair can be great.

Many jewellers will offer to guard you against such unfortunate circumstances by offering you insurance when you purchase your ring. But should you take the offer up?

What does your home and contents insurance cover?

The first thing to check is whether you already have insurance for the ring, in the form of home and contents cover. While most policies will cover jewellery in your home, they will require proof of the jewellery’s value. Be sure to keep your receipt, or if it’s a family heirloom, get it valuated.

Some home and contents policies will only cover theft, rather than loss or damage. If your policy won’t let you undertake jewellery repairs in Sydney, it may be worth either upgrading it or taking out purpose built engagement ring insurance.

Do you feel lucky?

For those without home and contents insurance that properly covers their bling, there’s just one simple question to ask – do you feel lucky? Like every other form of insurance, engagement ring cover simply safeguards your purchase if the worst were to happen. It’s up to you to weigh up whether you feel the premiums represent good value against remaining uncovered and hoping for the best.

The one value that insurance can’t take into account is sentimental. A custom engagement ring in Sydney may well have been an expensive purchase, but putting a value on what it means to you in an emotional sense can be difficult. And it could be that covering yourself for the loss of such a sentimental piece is well worth the premiums you’ll be asked to pay.