Jewellery Insurance Ontario

Home insurance covers all your family’s belongings – right? Including your diamond engagement ring? Well, to an extent. The truth is that most home insurance policies may only cover “valuables” like your fancy watches, jewellery, and fur coats up until a combined maximum. This is also usually subject to whatever your chosen deductible amount is currently.

Your engagement or wedding ring has more than just monetary value. It has emotional value too, as it marks a poignant milestone in your relationship and in the start of your family. You wouldn’t want anything to happen to it.

What if your ring was worth more than your home insurance policy’s limit?  For higher value items, your home insurance policy or even renter’s insurance policy may not be enough to cover the full replacement cost of your belongings. For this, you will need a separate rider for jewellery insurance. In Ontario, this additional “floater” may be used as extra coverage for your prized possessions.

You may believe this isn’t a problem you’d ever run into yourself, but take this Ontario women’s experience as an example of what could happen. She didn’t realize until she lost her 20k engagement ring diamond that it wasn’t covered by insurance.

Here are some of the frequently asked questions we get about jewellery insurance in Ontario – answered for your convenience.

What types of items can be covered with jewellery insurance?

You may own other prized possessions that do not constitute as jewellery. Do these need insurance as well? Gadgets like your laptop, computer hardware, sound equipment, etc. may be covered under your home or renter’s insurance policy up until your pre-stated limit for your contents but – like the remaining contents of your home – these only have protection for their depreciated value rather than what it would take to replace them entirely. Photography equipment may also have coverage up until a certain limit on your contents insurance.

How much does it cost to insure a $10k engagement ring?

Say, for instance, your engagement ring was valued at $10,000. You might be paying between $XX and $XX/year for its insurance. Consider that adding jewellery to your home or renter’s insurance policy may range between 1.5 to 2% of its appraised value – (diamond prices will actually rise over time, so there may be a new appraisal required every 2-5 years depending on your insurance provider.)

Some policies may have deductibles, whereas others don’t. Your deductible is the amount you would pay out in the event of a claim before your insurance provider steps in to pay the remainder. The rule of thumb is that the higher your rates, the lower your deductible (and vice versa.) Policies without a deductible tend to run higher in terms of premiums, but there will be a fuller reimbursement with far less hassle. It might be a good idea to ask a professional or weigh your options before committing.

You can go through an insurance broker that will help you shop around and find the most affordable quotes for your coverage needs. This way, you can have protection without needing to break the bank.

What is covered with jewellery insurance?

Does jewellery insurance cover a stolen ring? What about a lost ring? Jewellery insurance offers repair and replacement coverage up until a certain limit, which would include instances of theft, loss, and damages. For example, your diamond ring gets caught on the threads of your clothing and its prong gets bent the wrong way. Your insurance provider may offer coverage for a repair.

A jewellery-specific rider or jewellery insurance may even offer coverage for worldwide travel, so your diamond engagement ring has coverage anywhere in the world.

It might be time to get an appraisal.

An appraisal may be required depending on your current insurance provider when you are purchasing a jewellery insurance rider. There is a chance that the store where you purchased your ring may provide one, but if you are insuring your ring after the fact then you will need to obtain a separate appraisal. There is also the potential that your insurance provider will request an independent appraisal.

You may hire the help of a professional jeweler who can do you appraisal for you. They may assess the value of your ring for coverage purposes while simultaneously verifying any facts about it. You can even ask the jeweler doing the appraisal for any recommendations they may have. Appraisals are not free, but they may be required and can range between $50-$150 per hour.

Acquiring insurance is a prudent idea.

Wedding rings, engagement rings, and other prized possessions can be seriously expensive – and they’re “one-of-a-kind” to you and your spouse. Provided their high cost, it’s a good idea to purchase a separate jewellery rider or valuables rider to cover your more expensive personal property beyond what your current home or renter’s insurance policy offers.

Depending on your needs and the total assessed value of your belongings, it’s not a bad idea to discuss with your insurance broker exactly what it is that you need. This way, you can do a review of your content’s values with a professional and ensure that the true cost of your coverage meets the value of your belongings so that you are protected properly if anything happens.