ngagement and wedding rings are often the most valuable items we wear, but this also means they can be the most expensive items to replace if they are lost, stolen or damaged. That is why it is important they are adequately insured.
Your home insurance policy can cover your rings should the worst happen. Here’s all you need to know about getting the right cover.
Check your home insurance policy
It’s vital that you check the small print of your policy for limitations and exclusions on cover. For instance, home insurance providers typically set what’s called a ‘single-item limit’ of £1,500 or £2,000 on the amount of cover they’ll provide for each of your possessions.
Anything worth more than this amount needs to be listed separately when you take out or renew your insurance. So, if you own a ring or rings that are worth more than the limit, they will need to be itemised separately on your policy as a high-value item, and your insurer will adjust your premiums upwards to reflect the potential for a bigger claim.
Your insurer may not pay out in full, or at all, if you fail to disclose it as having high value and attempt to claim.
Bear in mind that even if your ring is added to your policy, it may only protect it in certain circumstances.
Types of cover for my rings
Your home insurance policy is likely to cover a ring against certain risks, such as if your home is burgled and it is stolen, or if it’s damaged due to flooding or fire.
It may include the following cover or offer it as an add-on, at an additional cost:
Accidental damage: covers a ring if you unintentionally scratch it, for example. It also covers your ring if it is damaged in your garden or if you’re moving house and it’s damaged in transit – so long as it’s in a professional removals vehicle
Personal possessions: covers the damage, loss or theft of your ring while you’re wearing it when you’re away from your property. Depending on the insurer, this can also extend to while you’re on holiday, in which case there will be a limit of typically 60 days of cover abroad, per year.
Note that, if you’re travelling with your ring, your travel insurance policy may provide the cover you need, but the single-item limit may be less generous than that on your home insurance policy, so it’s best to weigh up what both have to offer, to find the best cover.
New for old vs indemnity
Your home insurance provider will cover a ring in one of two ways:
New for old: it will pay out for a brand-new replacement of equivalent value if your ring is damaged, lost or stolen. Most policies are arranged on this basis.
Indemnity: pays out the value of your ring taking into account wear and tear. This could be less than it cost.
Indemnity cover is often cheaper so you’ll have to weigh up cost against payout when choosing what type of cover to buy.
Compulsory and voluntary excess
Most home insurance policies include a ‘compulsory’ (sometimes called ‘mandatory’) and a ‘voluntary’ excess.
An excess – or deductible – is the amount you are required to contribute towards the cost of any claim you make. The idea is to prevent people making claims for small sums, which would be administratively expensive, and also to keep a lid on premiums by reducing the total paid out by the insurance company.
Compulsory excess can range from £100 – £200, while voluntary excess could be anything from £50 – £300, with higher excesses leading to bigger premium reductions – but, in the event of a claim, a smaller pay-out.
When buying online, try toggling between different excess levels to see how they affect your premium.
In addition to opting to pay more in excess should you claim, there are other ways you can cut the cost of cover.
Consider fitting an alarm system and other security measures in your home, if you haven’t done so already. An insurer will view your property as lower risk as a result, and will be likely to reward you with lower premiums.
Also, pay your premiums in full, at the start of your policy, if possible. This is often cheaper than paying in monthly installments.
How to find the best deals
The easiest way to find the best deal on home insurance that will cover your rings is to use a comparison site. Answer a few questions and you will be able to compare the cheapest quotes on policies that meet your requirements.