Engagement ring insurance

Yes, if you have an engagement ring, wedding ring or family heirloom, you could be covered by either a home and contents policy, or a contents-only policy. With the right cover, insuring your ring can help provide peace of mind that you’re covered for accidental loss or damage both inside the home and out.

The exclusions, limits and sub-limits on your policy will vary between insurers. Always read the relevant Product Disclosure Statement (PDS) to know exactly what you’re covered for and for how much. Read the Target Market Determination (TMD) also to decide whether a policy is suitable for your needs.

To have cover when you wear your ring outside the home, you’ll need portable contents cover. This is typically an add-on to your regular contents insurance policy that can cover accidental damage or loss while you’re out and about in Australia.

If you plan on travelling overseas, be aware your contents cover may not always extend beyond Australia, depending on your insurer. To financially protect your ring even when abroad, you can take out a travel insurance policy with high limits for lost, stolen or damaged personal belongings. Some travel insurers may also offer additional specific item cover up to the policy limits, though this may incur an additional premium.

The claimable limits of your contents policy may only be a set amount (e.g. $1,000) for unspecified items, which may not be high enough to cover expensive jewellery items like your diamond engagement ring. However, you may be able to list your ring as a specified item on your insurance policy and choose your own claim limit, up to a certain amount. Keep in mind that this will increase your contents insurance premium.

Your portable contents insurance can cover more than just your rings and other jewellery. It can cover a number of objects you take outside your home including, but not limited to:

• Bicycles
• Cameras and other photography equipment
• Medical and accessibly aids (e.g. wheelchairs)
• Musical instruments
• Glasses.

You can also be covered for electronics such as laptops or mobile phones, but you may need to list them as specified items on your policy and not be using them for business purposes.

The types of items you can cover and how you cover them may vary between insurers, so it’s always a good idea to compare contents insurance quotes and inclusions before deciding on a policy.

Before even taking out a policy, it’s a good idea to make sure you have any relevant receipts and to see a professional appraiser to get a valuation of your ring. Knowing the replacement value can help with choosing the right amount of cover for your ring; though be aware in most cases when you claim you will need to contribute your policy excess. It’s also a good idea to have pictures or short videos of your jewellery to provide further evidence. Keep these documents and other records stored somewhere, as you may need them when if you need to make an insurance claim.

If your ring is damaged due to an insured event, your insurance provider may cover the cost of repairing your ring. If it’s lost or stolen, you may need to provide proof of ownership and value to be covered. Depending on your insurer, you may be able to choose your preferred jeweller to make the repairs or replacement.

For expensive rings and other jewellery, it’s a good idea to see a professional valuer every few years at least. If the value of your ring has gone up, you may want to increase the cover for your ring on your contents insurance policy If you don’t get it revalued, you run the risk of being underinsured.

If you lose your ring, your insurer agrees to pay for a replacement (up to the policy limits) and it’s then found, what then? The first thing you should do is contact your insurer and let them know you have found the ring; not doing so could be considered insurance fraud. While it will vary between insurers, you may need to pay back the amount you were paid, or return the replacement ring to your insurer.