Valentine’s Day will soon be here. Are you considering taking advantage of this romantic holiday to pop the question to your loved one? Purchasing an engagement ring is a big decision and can be a big investment. Have you ever considered who should insure the ring before the big day in the event she says “yes”?
While not holding much romantic value, this all becomes a question of insurable interest. When you purchase valuables (like an engagement ring) for someone else and you want to insure the item, you are trying to create an insurable interest. Insurable interest means you have a strong interest in an item, but it does not reside with you in your home and you would like to insure it over a period of time.
The easiest way to create insurable interest for the person in possession of the ring is to make the use of the ring by your fiancée conditional. (Yes, again, this is not romantic, so use caution and common sense.) Basically, you are saying, “You still own the ring and it doesn’t truly become your future wife’s until you both are married.” Until that time, you have an insurable interest and there should be coverage under your policy.
If you make ownership conditional on marriage, you’ve created an insurable interest and may insure the ring on your own homeowner’s policy. Since most homeowner’s policies limit theft of jewelry to about $1,500.00 (some less, some more), the ring should be scheduled on your homeowner’s policy. An alternative is for your fiancée to insure it on their policy since coverage usually extends to any property used by the insured, not just property owned.
Once married, a single homeowner’s policy should be in place with both husband and wife as named insureds and the ring and other jewelry scheduled on the policy. Be sure to contact one of our knowledgeable agents here in our office if you need insurance advice or coverages placed so you can start your new future off right!
Engagement ring