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Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 8:02 pm
by RJC
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 8:12 pm
by TxAg
We decided that my wife is getting a CZ if she loses th real thing. We don't have insurance on it.

Our mentality is to own our possessions rather than let them own us.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 8:26 pm
by sksavers3
I always thought we’d get around to insuring my $10k engagement ring but dragged my feet getting the required appraisal. Now (14 years into marriage!) my husband just says he’d buy me a new ring if something happened to mine. But...after this long (and with 3 kids’ expenses), I am not sure I’d be willing to use our money for another ring. But I’m kind of unsentimental in that I bought myself an anniversary band ($900) at Costco. I’m glad I have enjoyed the ring and I do love it but I’m also glad not to keep paying to own it.

We do pay about $20/year for up to $3k of “unscheduled jewelry watches and computers” through homeowners insurance.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 8:29 pm
by TallBoy29er
Nah, dropped it. At some point the projected cumulative cost of insurance didn't make sense for a sentimental piece that cannot be replaced. Save the coin.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 8:41 pm
by runner3081
We never purchased it. Wife's ring was about $2.5k, mine was $200.

There was some free. limited coverage based on 6 month cleanings for life. We even let that lapse.

Funny related note, we just hit 13 years and neither one of us have worn our rings in over two years. They sit in an envelope in the clost, haha.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 8:43 pm
by stoptothink
TxAg wrote:
Wed Sep 04, 2019 8:12 pm
We decided that my wife is getting a CZ if she loses th real thing. We don't have insurance on it.

Our mentality is to own our possessions rather than let them own us.
This is why my wife picked a $500 ring (that sits in a box) and then has about half a dozen $2-$10 rings that she actually wears. I'm definitely noticing that expensive engagement rings are becoming less of a thing in younger generations.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 8:45 pm
by Starfish
Our rings combined are worth at most 500$. So no insurance.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 8:45 pm
by sg0422
I insured my wife’s ring with Jeweler’s Mutual. $75 annually for $7.5k of coverage. It covers loss and theft domestically and internationally.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 9:09 pm
by DinkinFlicka
We insured my fiancee's ring through Jewelers Mutual. Even though the cost of the ring was low, she's not to used wearing relatively expensive jewelry so the $30/yr was worth the peace of mind. Maybe after a couple years, we'll drop it.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 10:20 pm
by PavlovsCat
Wife has around a $15k ring. We bought insurance, pretty inexpensively. She cracked the center diamond, valued at over $10k from the crown straight to the bottom. Had to pay a deductible of $1k, got it replaced with a less expensive diamond, pocketed the difference. Diamonds are a sham, but if you get an expensive one, get it insured.

Edit: much cheaper to insure through our primary insurance provider than a secondary company.

Re: Wedding/Engagement Ring Insurance

Posted: Wed Sep 04, 2019 10:26 pm
by jbuzolich
I just nudged up the home owners insurance for scheduled items like the ring and higher coverage on unscheduled jewelry and precious metals. Think it added $115 total yearly to the bill so I kept it. Wife has misplaced the ring more than once and got very emotional about losing it. Thankfully it was found each time, but we'll be compensated if it does get lost.
My band is only a couple hundred in Platinum and I'm too fat to wear it right now. Lol

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 6:43 am
by simplesimon
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Your rate sounds high, maybe 1.5x more than similar coverage that I have. Who is your insurer? We went with Jewelers Mutual.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 6:58 am
by JoeRetire
RJC wrote:
Wed Sep 04, 2019 8:02 pm
What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?
My wife and I disagreed about the value of this insurance. I said it wasn't worthwhile. She seemed to think buying the insurance would ensure that the ring wouldn't be lost. So of course we bought the insurance as a rider on our homeowner's insurance.

While I still disagree, it wasn't very expensive and has been peace of mind money well spent. I guess.

Happy wife, happy life.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:00 am
by RJC
simplesimon wrote:
Thu Sep 05, 2019 6:43 am
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Your rate sounds high, maybe 1.5x more than similar coverage that I have. Who is your insurer? We went with Jewelers Mutual.
We have Jeweler's Mutual as well. After looking at their statement, it appears that the appraised value is around 30k now (which I find hard to believe...).

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:02 am
by RJC
JoeRetire wrote:
Thu Sep 05, 2019 6:58 am
RJC wrote:
Wed Sep 04, 2019 8:02 pm
What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?
My wife and I disagreed about the value of this insurance. I said it wasn't worthwhile. She seemed to think buying the insurance would ensure that the ring wouldn't be lost. So of course we bought the insurance as a rider on our homeowner's insurance.

While I still disagree, it wasn't very expensive and has been peace of mind money well spent. I guess.

Happy wife, happy life.
I'd like to get rid of it. I feel like there's a point somewhere when it's not worth paying every year.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:05 am
by simplesimon
RJC wrote:
Thu Sep 05, 2019 7:00 am
simplesimon wrote:
Thu Sep 05, 2019 6:43 am
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Your rate sounds high, maybe 1.5x more than similar coverage that I have. Who is your insurer? We went with Jewelers Mutual.
We have Jeweler's Mutual as well. After looking at their statement, it appears that the appraised value is around 30k now (which I find hard to believe...).
Yes that sounds a bit inflated and you may be paying a higher premium as a result. You should be able to reduce the coverage and the premium.

Try shopping for a ring with the same specs right now and see what it would cost. Assuming yours is not custom made that'll provide you a reference point.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:07 am
by simplesimon
RJC wrote:
Thu Sep 05, 2019 7:02 am
I'd like to get rid of it. I feel like there's a point somewhere when it's not worth paying every year.
Assuming the premium is competitive, it reflects the risk of loss. The variable here is your risk tolerance.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:30 am
by RJC
PavlovsCat wrote:
Wed Sep 04, 2019 10:20 pm
Wife has around a $15k ring. We bought insurance, pretty inexpensively. She cracked the center diamond, valued at over $10k from the crown straight to the bottom. Had to pay a deductible of $1k, got it replaced with a less expensive diamond, pocketed the difference. Diamonds are a sham, but if you get an expensive one, get it insured.

Edit: much cheaper to insure through our primary insurance provider than a secondary company.
It's definitely a sham. That is why I am having a hard time paying insurance for it.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:43 am
by simplesimon
RJC wrote:
Thu Sep 05, 2019 7:30 am
PavlovsCat wrote:
Wed Sep 04, 2019 10:20 pm
Wife has around a $15k ring. We bought insurance, pretty inexpensively. She cracked the center diamond, valued at over $10k from the crown straight to the bottom. Had to pay a deductible of $1k, got it replaced with a less expensive diamond, pocketed the difference. Diamonds are a sham, but if you get an expensive one, get it insured.

Edit: much cheaper to insure through our primary insurance provider than a secondary company.
It's definitely a sham. That is why I am having a hard time paying insurance for it.
The fact that the replacement may cost you $15k+ is how this should be viewed, sham or not. If you're having a hard time paying insurance for it, I bet you really did not want to buy the diamond in the first place.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:45 am
by carorun
Look into a rider on your homeowners policy. Insurance for my ring is less than $100/year.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:55 am
by Sandtrap
None.
DW and I don't see the use in it vs be careful with it as one would any valuable.
j

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 8:04 am
by deltaneutral83
carorun wrote:
Thu Sep 05, 2019 7:45 am
Look into a rider on your homeowners policy. Insurance for my ring is less than $100/year.
Does it cover damage, lost, theft, domestic and foreign? My premium was 1.14% of the value with a $1k deduc through JM. I am thinking about calling homeowners at the end of the cycle if this is the case on homeowners.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 8:11 am
by mmmodem
DW got pregnant the first year we were married. She could no longer fit the engagement ring. She was against resizing as she would lose the weight afterwards. We were able to find a cubic zirconia that looked similar for about $100. And that is what she has worn for the last decade. The engagement ring just sits in the safe. I guess we sorta insured the ring for a one time cost of $100 with a $100 deductible.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 8:12 am
by SuperSaver1975
My wife had an engagement ring worth about $10,000 thanks to my MIL giving me a family heirloom diamond to use in it. I bought the setting. When my wife and I bought our first townhouse, we put a rider in our homeowner's insurance to insure the ring. Later, when we moved to another state & bought a new house, we kept the same insurance company and instructed our insurance agent to keep the same rider on the ring. After some time we hired a maid service to clean every 2 weeks. It was my wife's idea, I didn't like it. I said "sooner or later, they are going to steal from us". And they did. A maid stole my wife's ring, and sold it at a local pawn shop for $500. By the time we figured this out, the ring had long since left the pawn shop (melted down, diamond gone).

It turned out that the insurance agent never put the rider for the ring in the insurance policy after we moved to a new house. He messed up, and we also messed up by not catching his mistake. It was a real shock to report our loss to the insurance company, only to find out that the rider that we had previously & specifically instructed to be in our policy was not there. Eventually a persistent local cop was able to get the (former) maid to confess, even though she could have got away with it if she stonewalled. She was found guilty in a court and ordered to pay us $10,000 (which took years to collect).

I think an insurance rider on a valuable engagement ring is a good idea.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 8:13 am
by msi
We use Jeweler's Mutual.

I would think if you put a ring on your homeowner's insurance and then need to make a claim, your premiums for the entire policy, not just the rider will go up?

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 8:21 am
by lthenderson
We didn't get any insurance on our $1.2k engagement ring that my wife wore for three months until we got married. In all the decades since, it has sat in a box in her closet.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 9:29 am
by HereToLearn
RJC wrote:
Thu Sep 05, 2019 7:00 am
simplesimon wrote:
Thu Sep 05, 2019 6:43 am
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Your rate sounds high, maybe 1.5x more than similar coverage that I have. Who is your insurer? We went with Jewelers Mutual.
We have Jeweler's Mutual as well. After looking at their statement, it appears that the appraised value is around 30k now (which I find hard to believe...).
Your insurer may require a new appraisal in order to reduce the level of coverage to $15K. Annoyingly, my insurer bumps the value by 6%/year, even though the value of the insured item has not increased at that rate. The only way to have my insurer reduce the insured value was to submit a new appraisal.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 9:44 am
by RJC
simplesimon wrote:
Thu Sep 05, 2019 7:43 am
RJC wrote:
Thu Sep 05, 2019 7:30 am
PavlovsCat wrote:
Wed Sep 04, 2019 10:20 pm
Wife has around a $15k ring. We bought insurance, pretty inexpensively. She cracked the center diamond, valued at over $10k from the crown straight to the bottom. Had to pay a deductible of $1k, got it replaced with a less expensive diamond, pocketed the difference. Diamonds are a sham, but if you get an expensive one, get it insured.

Edit: much cheaper to insure through our primary insurance provider than a secondary company.
It's definitely a sham. That is why I am having a hard time paying insurance for it.
The fact that the replacement may cost you $15k+ is how this should be viewed, sham or not. If you're having a hard time paying insurance for it, I bet you really did not want to buy the diamond in the first place.
I was fine buying it 8 years ago but the more I learned about the diamond industry, the more I view it as a sham.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 9:50 am
by John Doe 123
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Your insurer may require a new appraisal in order to reduce the level of coverage to $15K. Annoyingly, my insurer bumps the value by 6%/year, even though the value of the insured item has not increased at that rate. The only way to have my insurer reduce the insured value was to submit a new appraisal.

I had Jewelers Mutual for the first couple of years. They did try to raise the premium on us by an automatic rate every year. I told them not to do it or I was going to find a new insurer. They removed that auto-increase.

I custom made my wife's ring and Jewelers Mutual were the only ones I could find that would insure loose stones. I was not comfortable with the risk of having loose stones floating around in my house. As a young man the loose diamonds I bought were quite expensive for me, so I wanted to have them insured.

I updated the policy once it had been put into the setting and we did keep it for a couple years. I eventually dropped it when I realized that we could cash flow the cost of a new ring and that if my wife loses it, then the blow will be sentimental and not financial.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 10:06 am
by barnaclebob
We had our rings insured with our homeowners policy. It was pretty cheap, less than $100 a year with a $200 deductible.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 10:12 am
by KT785
We have a valuable personal property policy from USAA on my wife's jewelry: wedding set is scheduled and there's blanket coverage for the rest. Premium is around $200 per year and the scheduled wedding set is valued at around $10,000.

Ostensibly, the policy also covers all jewelry in the house, including my Apple watch and wedding band (neither of much monetary value)--her wedding set had to be specifically scheduled given its value is over a certain threshold.

One thing to note, many HO policies have low limits on jewelry coverage and, in our case, our HO deductible is higher than the jewelry limit anyway. Accordingly, having a separate policy for jewelry allows us to fill that coverage gap . . . and provides broader coverage than a HO policy.

KT785

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 10:16 am
by LiterallyIronic
The only thing I've ever spent $15,000+ on is my house and it's insured. I'd insure anything I spent that much money on.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 10:38 am
by RickBoglehead
Big difference in cost between a jewelry policy sold by a jewelry store and personal property on a homeowner's / renter's policy. We have $13,500 of listed items and pay $26.40 per year. Imagine if a piece of jewelry simply falls off (necklace breaks). Or stones fall out of a setting.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 11:32 am
by rjbraun
RickBoglehead wrote:
Thu Sep 05, 2019 10:38 am
Big difference in cost between a jewelry policy sold by a jewelry store and personal property on a homeowner's / renter's policy. We have $13,500 of listed items and pay $26.40 per year. Imagine if a piece of jewelry simply falls off (necklace breaks). Or stones fall out of a setting.
Less than $30 premium to cover $13,500 of jewelry? What is the deductible? Does it cover the full $13,500 if all of the listed items are lost or damaged?

That sounds too good to be true. If all the jewelry "simply falls off" or stones go missing, it's hard to believe that under $30 annually will result in the policy holder receiving a check for $13,500.

What am I missing?

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 11:42 am
by oldfatguy
I've never owned or purchased a ring that was worth insuring.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 12:00 pm
by John Doe 123
rjbraun wrote:
Thu Sep 05, 2019 11:32 am
RickBoglehead wrote:
Thu Sep 05, 2019 10:38 am
Big difference in cost between a jewelry policy sold by a jewelry store and personal property on a homeowner's / renter's policy. We have $13,500 of listed items and pay $26.40 per year. Imagine if a piece of jewelry simply falls off (necklace breaks). Or stones fall out of a setting.
Less than $30 premium to cover $13,500 of jewelry? What is the deductible? Does it cover the full $13,500 if all of the listed items are lost or damaged?

That sounds too good to be true. If all the jewelry "simply falls off" or stones go missing, it's hard to believe that under $30 annually will result in the policy holder receiving a check for $13,500.

What am I missing?
Either RickBoglehead has a high deductible, is getting a steep discount on his individual article policy because he buys a lot of other insurance, or does not truly have the coverage in policy that he describes (protection against loss+damage). I believe many homeowner policies will cover theft but not mysterious disappearance or damage.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 12:05 pm
by Jags4186
Our policy was $234 in 2019 for $16k of coverage and $0 deductible. It feels like throwing money away, but if the ring were to be lost or damaged my wife would want it replaced so I keep it.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 12:10 pm
by RickBoglehead
rjbraun wrote:
Thu Sep 05, 2019 11:32 am
RickBoglehead wrote:
Thu Sep 05, 2019 10:38 am
Big difference in cost between a jewelry policy sold by a jewelry store and personal property on a homeowner's / renter's policy. We have $13,500 of listed items and pay $26.40 per year. Imagine if a piece of jewelry simply falls off (necklace breaks). Or stones fall out of a setting.
Less than $30 premium to cover $13,500 of jewelry? What is the deductible? Does it cover the full $13,500 if all of the listed items are lost or damaged?

That sounds too good to be true. If all the jewelry "simply falls off" or stones go missing, it's hard to believe that under $30 annually will result in the policy holder receiving a check for $13,500.

What am I missing?
There is no deductible on scheduled personal property. There are 6 or 8 items listed.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 12:35 pm
by rjbraun
RickBoglehead wrote:
Thu Sep 05, 2019 12:10 pm
rjbraun wrote:
Thu Sep 05, 2019 11:32 am
RickBoglehead wrote:
Thu Sep 05, 2019 10:38 am
Big difference in cost between a jewelry policy sold by a jewelry store and personal property on a homeowner's / renter's policy. We have $13,500 of listed items and pay $26.40 per year. Imagine if a piece of jewelry simply falls off (necklace breaks). Or stones fall out of a setting.
Less than $30 premium to cover $13,500 of jewelry? What is the deductible? Does it cover the full $13,500 if all of the listed items are lost or damaged?

That sounds too good to be true. If all the jewelry "simply falls off" or stones go missing, it's hard to believe that under $30 annually will result in the policy holder receiving a check for $13,500.

What am I missing?
There is no deductible on scheduled personal property. There are 6 or 8 items listed.
Sounds like a great deal. Wish I had that policy when a diamond stud earring went down the drain. That said, none of my jewelry is covered, though if I could get a deal like yours, I would reconsider my stance.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 12:51 pm
by RickBoglehead
I have a relative with USAA (I am with AMICA) with similar scheduled property coverage and price.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 1:28 pm
by rjbraun
RickBoglehead wrote:
Thu Sep 05, 2019 12:51 pm
I have a relative with USAA (I am with AMICA) with similar scheduled property coverage and price.
Thanks for that info. I don't have a military connection and so presumably would not qualify for USAA coverage, but I will consider AMICA when I do my inevitable comparison shopping after Chubb sends me a higher premium invoice with my renewal.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 2:36 pm
by dboeger1
Think about this logically and philosophically. What is insurance? Commercial insurance is essentially just offloading and pooling risk for a cost. Insurance companies are big businesses that make good money by effectively estimating and capitalizing on risk. They do everything in their power to tilt the edge in their favor. In that sense, they're not all that fundamentally different from casinos. Yes, you might win on a slot pull, but on average, the casino comes out ahead.

So why would any sane person go to a casino? For entertainment and the thrill of having a chance to win money. That's worth something to many people, right? Similarly, people buy insurance for peace of mind in the event of an unexpected loss. Ultimately, it's up to each individual to determine what that's worth to them. There are perfectly legitimate times to insure something. For example, most people aren't financially prepared to endure the loss of their home, so they buy home insurance. This is an effective means of protecting one's investment for an affordable cost, since the alternatives are to simply buy less home or make way more money, which can often be out of reach for typical families.

Here are my problems with buying wedding/engagement ring insurance:

1) This is arguably your first purchase as a committed couple. You're signing up to live a long and happy life together. If you can't afford to self-insure your ring because it's too expensive for your financial comfort level, it's too expensive, and you're starting your marriage off on the wrong foot when it comes to spending. How are you going to cope with funding retirement, children's educations, taxes, etc.? This is literally the very first thing. Let's say you were to take up playing a new instrument. You probably wouldn't buy the most expensive one of its kind on the first day and apply for your national symphony orchestra. The marriage absolutely should not live or die by whether the ring is insured (and if it does, that's a bad sign).

2) Ring purchases are done at a time of extreme emotional ups and downs, and are less likely to come from a place of calm unbiased clarity, which means you're probably over-spending as it is (we all do to an extent, it's a natural thing to celebrate). Again, feeling the need to insure your rings is just a signal that you've taken it so far that even your excited newlywed self is skeptical. It's like coming to the realization that you have to spend most of your income to insure an exotic car that you just bought with your entire life savings.

3) I know marriage can feel magical at first, but at the end of the day, it's still just a ring. That may not be a popular thing to say, but I've only been married 4 years, and I can tell you the wedding euphoria is far from eternal. So much of marriage is debating whose turn it is to do the laundry and boring stuff like that. I promise you that whether or not the ring gets lost is near the very bottom of long-term marriage priorities.

4) It's easy to get sold on insuring small stuff when you're young and have less income and savings. Don't make the mistake of assuming that you'll be in the same financial position forever. Buying a house is typically the exception rather than the norm, because people tend to borrow several times their annual income to afford them, so there's a certain long-term confidence in insuring a home. But for all you know, you and your bride might double your collective income before you know it. Or heck, it could go the other way, and you could have children sooner than you anticipated who could use that ring insurance money to pay for their needs. A lot can change relatively quickly early on in marriage, so your personal valuation of the coverage may only be appropriate for a brief snapshot in time.

5) People "renew" these kinds of things all the time. It may sound cheesy, but again, if you end up being far more successful than you anticipated, you might find that you can afford a much nicer 10th anniversary ring, a second honeymoon, etc. My wife and I actually didn't have a proper wedding ceremony with family and everything. We got married on a whim while I was visiting her overseas, and that was it. She still bugs me about it to this day, saying I owe her a wedding. The beautiful irony of it all is that at the time, a wedding would have set us back in a major way, but now, we both make more than enough that we could splurge on an extravagant ceremony and pay for all our relatives to fly to some exotic location, and it would be a fraction of our annual income. I used to make fun of the idea of "renewing" vows and stuff like that, but now that I have witnessed the compounding potential of delaying gratification, I realize a financially sound marriage is actually a great reason to celebrate time and time again through the years.

6) As others have already mentioned, there's something sentimental about THE ring, and getting a replacement through insurance is not really the same thing. At that point, you may as well invest what would have been the premiums, and by the time it might get lost, you will likely be able to afford a substantially nicer replacement anyway, one that gets picked out as a couple.

At the end of the day, all of these points really just boil down to the same thing, which is that if you insure everything, the only ones saving money are the insurance companies, because you're doing the selling for them. Insurance is not something you should do willy nilly just because somebody told you it was a good idea. Do it with intention. Buy insurance when you know what it is you're buying and what it's worth to you. Don't buy it because you've been tricked into believing that it will magically prevent anything bad from ever happening to you. It doesn't do that by magic, it does it with your money, and it will bleed you dry like a casino bleeds a gambling addict dry. But if you use it sparingly to protect certain things that you are unprepared to replace with your own savings, then sure, it can be used to great effect.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 3:47 pm
by JoeRetire
RJC wrote:
Thu Sep 05, 2019 7:02 am
JoeRetire wrote:
Thu Sep 05, 2019 6:58 am
RJC wrote:
Wed Sep 04, 2019 8:02 pm
What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?
My wife and I disagreed about the value of this insurance. I said it wasn't worthwhile. She seemed to think buying the insurance would ensure that the ring wouldn't be lost. So of course we bought the insurance as a rider on our homeowner's insurance.

While I still disagree, it wasn't very expensive and has been peace of mind money well spent. I guess.

Happy wife, happy life.
I'd like to get rid of it. I feel like there's a point somewhere when it's not worth paying every year.
I completely agree! For me, it's never been worth paying every year.

But that wasn't solely my decision to make. And so it goes...

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 4:08 pm
by unclescrooge
TxAg wrote:
Wed Sep 04, 2019 8:12 pm
We decided that my wife is getting a CZ if she loses th real thing. We don't have insurance on it.

Our mentality is to own our possessions rather than let them own us.
That's what I told my wife when I first bought her engagement ring.

In actuality it will be a moissanite stone. Chemically similar in composition to diamonds, but 1/10th the price.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 4:11 pm
by unclescrooge
SuperSaver1975 wrote:
Thu Sep 05, 2019 8:12 am
My wife had an engagement ring worth about $10,000 thanks to my MIL giving me a family heirloom diamond to use in it. I bought the setting. When my wife and I bought our first townhouse, we put a rider in our homeowner's insurance to insure the ring. Later, when we moved to another state & bought a new house, we kept the same insurance company and instructed our insurance agent to keep the same rider on the ring. After some time we hired a maid service to clean every 2 weeks. It was my wife's idea, I didn't like it. I said "sooner or later, they are going to steal from us". And they did. A maid stole my wife's ring, and sold it at a local pawn shop for $500. By the time we figured this out, the ring had long since left the pawn shop (melted down, diamond gone).

It turned out that the insurance agent never put the rider for the ring in the insurance policy after we moved to a new house. He messed up, and we also messed up by not catching his mistake. It was a real shock to report our loss to the insurance company, only to find out that the rider that we had previously & specifically instructed to be in our policy was not there. Eventually a persistent local cop was able to get the (former) maid to confess, even though she could have got away with it if she stonewalled. She was found guilty in a court and ordered to pay us $10,000 (which took years to collect).

I think an insurance rider on a valuable engagement ring is a good idea.
How did you collect on that judgement?

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 5:11 pm
by rj342
lthenderson wrote:
Thu Sep 05, 2019 8:21 am
We didn't get any insurance on our $1.2k engagement ring that my wife wore for three months until we got married. In all the decades since, it has sat in a box in her closet.
Mine wears her relatively modest solitaire ring everyday as a school teacher, along with a wrap with a couple more diamonds I got her at 10 year mark (forget exactly what they call that). Has the setting checked periodically.

I would say Rule Zero -- don't buy one so expensive you think it needs insurance.

I had the advantage of buying it while we were still in college so even if I'd followed the industry peddled salary multiplier rule it would not have hurt me too much :mrgreen:

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 5:40 pm
by protagonist
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Though the answer may be quite depressing, you might want to go to a jeweler and ask about the resale value of that ring that retailed and was appraised for $15K. Precious stones are terrible investments.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 5:42 pm
by stoptothink
protagonist wrote:
Thu Sep 05, 2019 5:40 pm
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Though the answer may be quite depressing, you might want to go to a jeweler and ask about the resale value of that ring that retailed and was appraised for $15K. Precious stones are terrible investments.
One of my best friends was engaged when we met ~15yrs ago. He spent $44k on the ring and sold it for $12k about a year later after it didn't work out.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:51 pm
by RJC
dboeger1 wrote:
Thu Sep 05, 2019 2:36 pm
Think about this logically and philosophically. What is insurance? Commercial insurance is essentially just offloading and pooling risk for a cost. Insurance companies are big businesses that make good money by effectively estimating and capitalizing on risk. They do everything in their power to tilt the edge in their favor. In that sense, they're not all that fundamentally different from casinos. Yes, you might win on a slot pull, but on average, the casino comes out ahead.

So why would any sane person go to a casino? For entertainment and the thrill of having a chance to win money. That's worth something to many people, right? Similarly, people buy insurance for peace of mind in the event of an unexpected loss. Ultimately, it's up to each individual to determine what that's worth to them. There are perfectly legitimate times to insure something. For example, most people aren't financially prepared to endure the loss of their home, so they buy home insurance. This is an effective means of protecting one's investment for an affordable cost, since the alternatives are to simply buy less home or make way more money, which can often be out of reach for typical families.

Here are my problems with buying wedding/engagement ring insurance:

1) This is arguably your first purchase as a committed couple. You're signing up to live a long and happy life together. If you can't afford to self-insure your ring because it's too expensive for your financial comfort level, it's too expensive, and you're starting your marriage off on the wrong foot when it comes to spending. How are you going to cope with funding retirement, children's educations, taxes, etc.? This is literally the very first thing. Let's say you were to take up playing a new instrument. You probably wouldn't buy the most expensive one of its kind on the first day and apply for your national symphony orchestra. The marriage absolutely should not live or die by whether the ring is insured (and if it does, that's a bad sign).

2) Ring purchases are done at a time of extreme emotional ups and downs, and are less likely to come from a place of calm unbiased clarity, which means you're probably over-spending as it is (we all do to an extent, it's a natural thing to celebrate). Again, feeling the need to insure your rings is just a signal that you've taken it so far that even your excited newlywed self is skeptical. It's like coming to the realization that you have to spend most of your income to insure an exotic car that you just bought with your entire life savings.

3) I know marriage can feel magical at first, but at the end of the day, it's still just a ring. That may not be a popular thing to say, but I've only been married 4 years, and I can tell you the wedding euphoria is far from eternal. So much of marriage is debating whose turn it is to do the laundry and boring stuff like that. I promise you that whether or not the ring gets lost is near the very bottom of long-term marriage priorities.

4) It's easy to get sold on insuring small stuff when you're young and have less income and savings. Don't make the mistake of assuming that you'll be in the same financial position forever. Buying a house is typically the exception rather than the norm, because people tend to borrow several times their annual income to afford them, so there's a certain long-term confidence in insuring a home. But for all you know, you and your bride might double your collective income before you know it. Or heck, it could go the other way, and you could have children sooner than you anticipated who could use that ring insurance money to pay for their needs. A lot can change relatively quickly early on in marriage, so your personal valuation of the coverage may only be appropriate for a brief snapshot in time.

5) People "renew" these kinds of things all the time. It may sound cheesy, but again, if you end up being far more successful than you anticipated, you might find that you can afford a much nicer 10th anniversary ring, a second honeymoon, etc. My wife and I actually didn't have a proper wedding ceremony with family and everything. We got married on a whim while I was visiting her overseas, and that was it. She still bugs me about it to this day, saying I owe her a wedding. The beautiful irony of it all is that at the time, a wedding would have set us back in a major way, but now, we both make more than enough that we could splurge on an extravagant ceremony and pay for all our relatives to fly to some exotic location, and it would be a fraction of our annual income. I used to make fun of the idea of "renewing" vows and stuff like that, but now that I have witnessed the compounding potential of delaying gratification, I realize a financially sound marriage is actually a great reason to celebrate time and time again through the years.

6) As others have already mentioned, there's something sentimental about THE ring, and getting a replacement through insurance is not really the same thing. At that point, you may as well invest what would have been the premiums, and by the time it might get lost, you will likely be able to afford a substantially nicer replacement anyway, one that gets picked out as a couple.

At the end of the day, all of these points really just boil down to the same thing, which is that if you insure everything, the only ones saving money are the insurance companies, because you're doing the selling for them. Insurance is not something you should do willy nilly just because somebody told you it was a good idea. Do it with intention. Buy insurance when you know what it is you're buying and what it's worth to you. Don't buy it because you've been tricked into believing that it will magically prevent anything bad from ever happening to you. It doesn't do that by magic, it does it with your money, and it will bleed you dry like a casino bleeds a gambling addict dry. But if you use it sparingly to protect certain things that you are unprepared to replace with your own savings, then sure, it can be used to great effect.
Lots of good points here. Thank you.

Re: Wedding/Engagement Ring Insurance

Posted: Thu Sep 05, 2019 7:53 pm
by RJC
protagonist wrote:
Thu Sep 05, 2019 5:40 pm
RJC wrote:
Wed Sep 04, 2019 8:02 pm
Dear Friends,

What is the consensus here about wedding/engagement ring insurance? Is it worth having? Is there a point where you can stop paying it?

Our insurance is about $300 a year and covers a ring that was purchased for around $15,000 (8 years ago).

Thanks in advance.
Though the answer may be quite depressing, you might want to go to a jeweler and ask about the resale value of that ring that retailed and was appraised for $15K. Precious stones are terrible investments.
I'm sure it will be depressing. I purchased the ring for 15k and got it appraised a few years later for 27k. I'm certain the resale value would be a fraction of that...