Planning a proposal this Valentine?
There is nothing more romantic than a marriage proposal on Valentine’s Day but your first step after receiving a valuable engagement ring—well, maybe your second after saying yes!—should be a practical one: call your insurance broker.
While there is no way to insure the sentimental value of such a gift, having the right amount of insurance will provide financial protection.
“‘Insurance’ is not likely to be the first word on many lovers’ lips this Valentine’s Day. However, in the event an expensive piece of jewellery is lost or stolen, the added gift of coverage can help alleviate any monetary woes,” said Jeanne M. Salvatore, the I.I.I.’s chief communications officer. “So if you’re planning a proposal, consider getting that ring covered before presenting it. In fact before leaving your Jeweller.”
Jewellery losses are among the most frequent of all household content and All Risk -related insurance claims. Taking these four steps will ensure adequate protection for your new ring:
1. Contact your insurance broker immediately.
Find out whether you will need additional insurance. Most standard household insurance policies include coverage for personal items such as jewellery when in the home; however, many policies limit the amount on jewellery. With the average engagement ring costing between R30 000 – R40 000, according to Business Tech, that is unlikely to be enough coverage on basic policies.
To properly insure jewellery, consider specifying the ring , rather than relying on your general all risk unspecified section. In most cases, these add-ons to your policy would also cover you for “mysterious disappearance.” This means that if your ring falls off your finger and is flushed down a drain, or is lost, you would be financially protected. And, unlike a unspecified or contents policy, specified items carry no or very small excess, so there is no out-of-pocket expense to replace the item.
2. Obtain a valuation certificate and or the store receipt.
Forward a copy of the valuation and receipt to your broker—so that your company has a record of the current retail value of the ring—and keep a copy for your own records. It’s also a good idea to get a updated appraisal every 2 years.
3. If you received an heirloom piece, have it appraised.
Antique jewellery will need to be appraised for its value.
4. Add the item to your home inventory.
An up-to-date inventory of your personal possessions can help you purchase the correct amount of insurance and speed up the claims process if you have a loss, so remember to add your new ring to your inventory. And if you don’t yet have an inventory, celebrate your engagement by creating one with your fiancée. To make creating a home inventory as easy as possible, contact your broker for an inventory form.
5. Household Contents Insurance
Finally, if you don’t think you need contents insurance, think again. A 2015 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had contents insurance but only 40 percent of renters had contents insurance. If you rent your home, contents insurance can provide important financial protection in the event your belongings are stolen or destroyed.
“In my many conversations with consumers, personal finance bloggers and insurance educators they have noted that the purchase of an engagement ring often triggers interest in getting contents insurance policy for the first time, as many (especially young) people start to think more seriously about financially protecting themselves,” said Salvatore.
NEW YORK, Feb. 12, 2016 /PRNewswire-USNewswire/ —
Article adapted for South African relevance.