Home Insurance Forum

Aug. 31, 2007

Does homeowners insurance cover the loss of an engagement ring? If so, must it be documented with an appraisal by the insurance company or will having the appraisal information in my possession be sufficient?

Richard, Pennsylvania

Dear Richard,

Whether or not it is covered depends on the value because, as Farmers Insurance spokesperson Kitty Miller points out, every homeowners policy covers the loss of jewelry. If you check your policy you'll find out what your coverage limit is. If the value of the ring exceeds that limit, you'll need additional coverage, called a rider. You can call your agent about this.

As far as appraisals are concerned, Miller says that you won't need to have the insurance company appraise it, since most insurance companies accept the appraisal of any certified jeweler. It's probable that the company will want to see a copy of the appraisal when writing a special coverage rider and will certainly want to see a copy if you end up making a claim.

Miller raised an interesting point, however, about engagement rings: If you're not married yet, and you and your fiancée are living in separate residences, you'll want to talk about whose policy to put it on — yours or hers. You'll want to look at whose policy can cover the ring without your having to obtain a special coverage rider or, if you do need a rider, which of you can add it with the smallest premium increase.

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