Protecting Your New Engagement Ring and Family

Although it’s hard to put a price on sentimental items, valuables such as diamond rings need

to be properly insured against loss or theft, and sometimes your existing insurance may not

provide enough coverage. Each year, according to the U.S. Department of Justice, consumers

spend $50 billion on jewelry, of which $1 billion is lost, stolen, or otherwise disappears. To

make matters worse, the vast majority of those valuable articles are underinsured, which

means they can not be adequately replaced.

Many homeowners or renters insurance policies provide only a basic level of personal

property coverage—often in the $1000 to $1500 range—for items such as engagement rings,

china, or silver. For couples with higher-valued items, it’s important to make certain those

valuables are appropriately protected.

The good news is, the proper level of insurance can be surprisingly affordable. Couples

should consider a Scheduled Personal Property (SPP), an endorsement to provide 100 percent

of the “stated value” of expensive items for a very small additional premium—often with no

deductible. Some insurers offer extra peace of mind, by providing coverage on an “agreed

value” basis instead of actual cash value or replacement cost. This means that, regardless of

the actual cost to repair or replace the valuable, the company agrees to pay, in the event of a

loss, an amount that has been agreed upon in advance.

Whether it’s an engagement ring, a family heirloom, or expensive wedding gifts, couples can

ensure that their valuables are appropriately protected by taking the following steps:

Have the items appraised. Locate a professional appraiser and get a detailed description

 and value of the item—in writing. Then, talk to your insurance agent, and have him or her

compare this appraisal against your coverage limits, to determine whether you should secure

Scheduled Personal Property coverage. Finally, store the appraisal in a safe place with other

valuable papers. Even if the value increases over time, it’s helpful to have the description in

writing.

“Refresh” appraisals every two or three years. Markets, such as those for diamond

 and silver, tend to fluctuate. Have items re-appraised, especially those with individual values

of more than $2,500.

 Create an inventory of all your personal possessions. By having a list of valuables

 written down or photographed, it is easier and more efficient to place a claim.

 

Reiner Insurance has over 70 experience in the insurance industry. To learn more, please contact at

973-376-6810 or 384 Morris Avenue Springfield, NJ 07081. For online tracking of your home inventory use the Insurance Information Institute website https://www.knowyourstuff.org/iii/login.html