I’m trying to figure out if it actually makes sense to insure our rings like the engagement ring cost $2,970 and was appraised at $3,650 and our wedding bands were $890 each. From what I’ve looked into we’ve got three options like the first would run about $60 a year and the nice part is claims don’t show up on CLU or affect renters/homeowners premiums though they usually pay the jeweler directly rather than cutting you a check. The second has a personal articles policy for the same price but those claims would show on CLU. The upside is that this one just gives you a check so you can go anywhere you want for a replacement. The cheapest option would be adding the rings onto our renters policy at around $30 a year, but any claims would affect CLU, future rates, and discounts. They’d pay by check too.
So I’m wondering like with rings at these values, is it really worth insuring them? And if so which one would be the smarter way to go?
Is it worth insuring engagement/wedding rings?
byu/No-Account4212 inpersonalfinance
Posted by No-Account4212
10 Comments
It comes down to your tolerance. If you lost a ring, what would you do? Would you absolutely need to replace it and if you had to, would it be hard to come up with whatever amount you needed to do so?
Depends if you’re the type of person that lose things or doesn’t take care of things. I am not, so I would not get insurance for my ring. Only you can decide if you need it or not.
Only you can decide if it’s worth it. If you’ve done this much research on it, I’d lean yes, 12 bucks a month to guarantee 4.5k worth of goods is a good deal to me.
I’ve paid for Jeweler’s Mutual for about 15 years now, about $100 per year for my two rings, his one ring, and a right hand lab ring. I just cracked the 1 carat diamond I paid $2250 for. (just did this, I dropped it off on Friday, haven’t heard back yet). Google says a 1 carat lab (I had natural) could be up to $800. So I’ve already paid more in insurance than I would for a 1 carat lab.
Like I said, I haven’t heard back yet on how much damage I did so…
In the case of wedding rings I would say no. While they do technically have cash value, do you ever intend on selling it? To me, most of their value is sentimental and insurance can’t repay that.
If you did lose the rings it also isn’t a necessity to replace them. Personally, I think mitigating the risk of discretionary spending is never worth it.
Go with personal article insurance. I did and it paired out a few times for things like water damage on laptop and dropping another and a broken watch. I never seen a rate increase. It saved me thousands when it was only 100 a year.
My entire house is insured for $1200. They wanted $150/yr to insure a $15,000 ring.
$1200/yr to cover nearly $500,000 in full replacement cost (not cash value)
$150/yr to cover $15,000.
The math was easy for me.
The answer depends on how much risk you want to assume. If the rings were lost, stolen, or damaged, do you have the cash to replace or repair them?
I know you asked about rings but slightly related. I insure my watches which range from 2K to over 15k. I would be pretty upset if I lost one or something happened to them. The price of insurance is worth the peace of mind I have.
I get like $5k of coverage for like $120/yr.
I’ll probably never use it and mathematically it’s not worth it, but it’s basically free and gives us peace of mind.