I had a coffee with my friend the other day, and she shared that one of the diamonds in her engagement ring had disappeared! They’d spent hours scouring the floors of her house, to no avail. She was lucky – her engagement ring is insured, so she’s getting a replacement stone (although she’s waiting to hear if she’ll have to pay an excess). It got me worried – and thinking – what happens if I lost one of my stones?! I asked Jon-Paul Hale, an insurance adviser at Willowgrove Consulting to explain what we need to know about engagement ring insurance. He also goes on to explain the next step after insuring your engagement ring – and that’s the considering the wedding planning process.
Engagement Ring Insurance – What you need to consider
Congrats! If you are reading this, you are about to embark on the next exciting, but stressful, stage of life, planning your wedding.
Before you get all carried away with planning, we need to discuss a few things. Moreover, they are all about risk, no not about getting married, but about protecting things so they do not become a drama on your special day.
Yes, I know not something you want to consider when you have just got engaged. Better now, than later when it is too late.
I am going to break this into three areas. Right now and planning, The wedding and right after and destination wedding considerations.
First off, let’s talk about your shiny new ring!
You need to add it to your contents insurance policy. If you do not have one, it is now time to get one.
Is it a single ring or is it a set?
This makes a difference for insurance purposes. If it is a single ring, this is how it gets insured. If it is part of a set, then the set needs to be insured.
Ok, it is a set, but you only have the engagement ring, that is ok, treat it as a single for insurance purposes now and make sure you add the rest as a set when you get them.
What’s the difference?
When it comes to replacement by insurance if the set is insured as individual pieces then if it is just the loss or damage to one piece, the repair or replacement may not match the rest of the set. Ruining the set and leaving you without your precious rings.
If they are insured as a set, then they get treated as a set, rather than individual items in an insurance claim.
Ok got that, what next?
Get a valuation, depending on the insurer; you will need one up front, or you will need it to prove the value for a claim.
- You need to have your jewellery regularly checked and serviced to ensure your insurance will cover you.
- Additionally every few years you need to get updated valuations too, again this is about the value of the cover in a loss situation both for cover level and at claim time
You will need to check with your insurer, or broker, exactly what the terms are for your policy as they differ from provider to provider.
The point of the regular servicing is to ensure that the clasps for the jewels are tight and not likely to drop the jewel out. Because wear and tear aren’t covered by insurance. If you lose a diamond, big or small, you do not want to have this pop up as a reason for a claim problem.
You need to add your partner’s ring too if you have one.
Ok, the cover.
You need contents cover that covers you for, fire, theft and accidental damage inside and outside your home.
We have recently had Youi taken to task about their cover and sales tactics, by default their contents policy would not cover accidental damage or loss away from home.
This is why talking to a reputable broker is worth the effort. Often it is also cheaper than direct too. Which is where Willowgrove Consulting comes in.
The next step: Being insured for wedding planning.
Hopefully, it all goes to plan, having been around for a while I have seen many things not go so well. Mostly when the planning has been good, things have gone smoothly.
When it comes to your planning, you need to think what if? What if something goes wrong, what’s the plan?
Primarily you need to consider the injury to people and damage to property that you could be liable for.
Health & Safety
Now that we have new laws for health and safety (H&S), from the 4th of April 2016, you need to be aware of your obligations for H&S. As the organiser, you fall under the definition of an undertaking in the PCBU definition. In your own home you are ok, in a venue, it gets a little more tricky.
Most people are not up to speed on this, so don’t be surprised about the, ‘say what?’ you are likely to get.
When you look at your venue, you should be asking for a copy of both their health and safety plan and what their liability insurance covers. This should form part of your decision making about whether or not you will use them.
With your wedding planner, if you are using one, you want to do the same with them too. The same goes for:
- Catering, if not provided by the venue
The only people who do not need an H&S plan are those attending as guests. Yes, it has got that silly.
That is all for now in this post; I will be back with more on wedding day risks and right after, soon.
If you need to insure your shiny new ring, give us a call, we would be privileged to do this for you.
Jon-Paul Hale is the owner of Willowgrove Consulting and is an award winning insurance adviser with 15 years of insurance industry experience.
Finalist for 2016 PAA Life Insurance Adviser of the Year and the 2015 PAA New Life Insurance Adviser of the Year.
Contact Jon-Paul directly on 021 02269127 or firstname.lastname@example.org and www.willowgroveinsurance.co.nz