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Say "I do" to ring insurance

Date posted:  11/10/16 11:00:00 AM Couples should insure engagement rings to protect this asset for the long-term.

If you have decided to pop the big question and have purchased a ring, it's time to consider another financial aspect of your engagement.

Ring insurance is typically an extension of a homeowner's policy, but it can also be purchased separately. By agreeing to the terms of an appropriate insurance policy, couples can rest assured their ring will be replaced or repaired if anything were to happen.

Evaluate current insurance coverage
Brides.com suggested first checking what your current policy will cover. In some instances, you can easily expand a policy to include valuable jewelry.

"In addition to engagement ring insurance, remember this is a time when you should be reevaluating all of your insurance needs as newlyweds," says Jeanne Salvatore, senior vice president of public affairs and consumer spokesperson for the Insurance Information Institute, according to Brides.com.

Reach out to your current insurance provider and find out how you can update your coverage to match your changing needs.

Consider shopping around
Before settling on a specific policy, speak with and get quotes from a few different insurance providers. Typically, costs will vary depending on the value of the ring and the size of the deductible. Larger deductibles will translate to more affordable monthly payments. However, if the ring is lost or stolen, you will be forced to pay a more substantial amount of money before replacing the piece of jewelry.

When shopping for policies, know how the provider plans to replace the ring, whether the ring's value will be matched and if specific circumstances aren't covered by the policy.

Have the ring appraised
When insurance firms provide information about various policies, the accuracy depends on the value of the engagement ring. To ensure an accurate quote and proper coverage, take the ring to a reputable appraiser and have the piece evaluated.

"It's very important that your appraisal is accurate," says Zaven Ghanimian, designer for Simon G. Jewelry, according to Brides. "It's not a good thing if the appraiser inflates the value of your ring." Sure, you might be thrilled when the sparkler that cost your groom $2,000 appraises for double, but you could end up losing money in the long run. You'll pay a higher monthly premium for a ring that appraises for $4,000, and if it's lost or stolen, your insurance company may just replace the ring—which could also only cost them $2,000—instead of cutting you a check for the cool 4K."

After several years of happy marriage, you will want to have the ring appraised again as your investment may be more valuable as time goes by. When this is done, be sure to bring a copy of the original appraisal.

Look into supplemental coverage
According to The Wall Street Journal, policies usually cover only about $2,000 for stolen jewelry. However, the average engagement ring is worth around $5,000. If necessary, you may consider shopping for additional coverage to ensure optimal protection of the engagement ring.

An engagement is a substantial commitment to another person, and a ring is a symbol of that love. By insuring your symbol of affection, you can be prepared for incidents that may affect the ring over the course of decades.