So, the big question has been popped, and you said, ‘yes!’ Now comes the champagne, wedding planning, and…insurance? Okay, so it’s not the most romantic topic, but let us unpack why you should consider insuring your engagement ring.
Why should I insure my engagement ring?
Insuring your engagement ring can cover it against common risks such as accidental loss, theft or accidental damage.
If you wear your ring every day, travel often or have an active lifestyle, it may be worth considering which cover is right for you. Depending on your policy, it may help with repair, replacement or cash settlement costs if your ring is lost, stolen or damaged in an insured event. Limits, exclusions and claim assessment criteria apply.
How do I insure my engagement ring?
Before you insure your engagement ring, there are some things to consider:
1. Do you want your insurance to cover your ring inside your home, outside your home, or both?
2. How much does your ring need to be insured for?
Depending on your answers, AAMI can help with some different insurance options. These include Home and Contents Insurance, Accidental Damage at Home cover and Portable Valuables Insurance. Each one covers you in a different way. Both Accidental Damage at Home and Portable Valuables are optional covers, which you can get for an additional cost. It’s a good idea to get familiar with them before you decide what cover you want.
How are engagement rings covered under Home and Contents Insurance?
Engagement rings are covered under AAMI Home and Contents Insurance for insured events at your home, but only up to a certain limit. With AAMI, jewellery has a flexible limit of $2,000 per item or set, up to a total of $5,000. If your ring is worth more than $2,000, you can choose to increase this limit for an extra premium. Your ring will then become ‘specified contents’ and be shown on your certificate of insurance.
With AAMI Home and Contents Insurance, your shiny new piece of matrimonial bling will be covered from insured events, such as:
- theft or burglary at home, and
- weather events, including storm, hail, fire (including bushfire) and floods.
Want more reassurance? Consider adding optional Accidental Damage at Home cover to your home insurance. This means if your engagement ring is damaged by an accident, you're covered while at home.
How are engagement rings covered under Portable Valuables Insurance?
To cover your ring for accidental loss, damage or theft while you’re away from home, you can choose Extra Cover Portable Valuables Insurance, an optional cover to your Home and Contents Insurance.
With Extra Cover Portable Valuables cover, there are two options – Unspecified and Specified. If you choose Unspecified, jewellery you leave home with, will automatically be covered up to $1,000 per item, pair, set or collection up to a sum insured you choose between $1,000 and $5,000. Or you can choose to specify items worth more than $1,000, each for their full replacement value. So if your ring costs $5,000, you can cover it for this amount for an additional premium.
How do I prove ownership of my engagement ring?
If you need to make an insurance claim for your engagement or wedding ring, you’ll need to be able to prove it’s yours and establish its value. Having certain documents at hand will help establish evidence of ownership, so try and have handy:
- the purchase receipt for your engagement or wedding ring,
- photographs of your ring taken from different angles, and
- a certificate of valuation from a jeweller – they'll often provide this proof of valuation as a free service if it's over a certain amount.
A good idea may be to have a family member or friend keep additional copies of these documents, whether in digital or paper form, for safe keeping. If you think that your ring has been stolen, it’s important to notify the police as soon as possible and include a copy of their report with your claim.
What if my ring is one of a kind?
If you’ve got a bespoke work of art sitting on your finger, a family heirloom or a piece that is not easily replaced, it’s a good idea to get it appraised by a jeweller who can give an accurate valuation. This means you can insure it for an appropriate price with an accurate description so that it can be properly covered by your insurance policy, should something happen to it.
So, there you have it! AAMI’s guide to engagement ring insurance. If you have any questions about insurance (unfortunately we can’t help you with picking out floral arrangements for the big day), contact us here.