Getting Engaged? Congratulations! Read this.

With engagement season drawing to a close (i.e., Thanksgiving – Valentine’s Day) some of you lucky ladies and gentlemen have already plunged into the hectic world of wedding planning.  You’ve got to find the who, what, when, where, and how. At Answer Financial, we don’t have advice for avoiding the poufy 80’s nightmare of a dress your future mother-in-law thinks your bridesmaids will just adore, but we do have a majorly helpful hint to avoid certain catastrophes…

Before all of that planning begins, there is one very important step that some brides either forget or do not even realize they should take: insuring your engagement ring.  Think you’re already covered?  Best read on and make sure.

Did you know that a typical homeowners or renters policy only includes $1,500 of jewelry coverage?  Furthermore, most insurance companies place a limit on how much they will pay out on a single item that has not been listed on the policy.  This limit usually ranges from $500-$1,000 for items of jewelry.

Can you imagine experiencing the loss of your engagement ring only to find out that the true value of the item is not covered?  Scheduling your high value property on your renters’ or homeowners’ insurance policy is a great way to prevent such a tragedy.

A scheduled item is different from your general homeowners’ or renters’ insurance policy. It is a single item that has a declared value. Your insurance carrier will want either an appraisal or certificate to verify the value of the piece.  For some items, they require annual appraisals to ensure that they are insuring for the correct amount.  When you’ve got a newly purchased ring, the necessary documents should be easily obtained from your jeweler.

Now back to that ring, let’s say its value is $10,000 and you insured it as a scheduled item. In the event of a theft or loss, your insurance will honor your declared value and send a check of that amount to you. Now, each policy and circumstance may vary but that is the general practice. It’s best to check with your insurance provider and get the full documentation from them to (literally) make sure you’re on the same page. If you’d like to find a renters or homeowners policy, call 1-800-258-5101 to speak with one of our licensed agents today.

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