Once you’ve made the decision to insure your engagement ring, there are a few options you need to consider before you actually buy the policy.  Insurance coverage will vary on the amount they will give versus actual appraised value of the ring.  Sometimes it may only be a certain percent that decreases over time. 

If you buy your gem from a retailer and have it appraised, it is fairly easy to determine the value of the ring.  Make sure you receive a grading certificate from the appraisal agent.  It’s a wise choice to make sure the group evaluating your jewelry is of the utmost reputable standard.  Check for references and inquire to find out if they are listed as a trusted member with one of the institutes such as the GIA or AGS.

Perhaps your engagement ring is not new and it is more of a family heirloom that has been passed down over one or more generations.  In this scenario it is very difficult to establish a monetary price tag.  You should have this ring appraised by an expert that will take in consideration the overall history and heirloom or antique status.

An ACV – Actual Cash Value policy is a very popular way to go.  It is important to have your appraisal updated frequently so that your cash value will be up to date in the event that you need to use the Actual Cash Value Policy for reimbursement of the ring if it is lost, stolen, or damaged beyond repair.

An AVP – Agreed Value Policy is coverage on an amount that is agreed upon by both the insurance agent and the property owner.  These are quite costly policies and are sometimes hard to obtain.  In the instance of insuring a family heirloom, it may be best to go with an Agreed Value Policy.