Should You Include Your Ring in Renters Insurance?

Should You Include Your Ring in Renters Insurance?

A lot of people assume their renters insurance fully covers their jewelry. It doesn't. If you're renting and you own a valuable ring, there's more to the story.

What Renters Insurance Really Covers

Most standard renters insurance policies do include coverage for personal property, which means your ring is technically covered. But there's a catch. The coverage for jewelry usually stops at $1,000 to $1,500. That's not a typo. If your ring is worth more than that, you're not getting the full payout in case something goes wrong.

Here's another thing: renters insurance only pays out for specific problems. That includes theft, fire, or vandalism. It does not cover losing the ring or damaging it in a way that wasn't caused by one of those exact things. Drop it in a drain? Not covered. Leave it in a hotel? Not covered. The stone gets loose and falls out? Still not covered.

Allstate, Policygenius, and BriteCo all say the same: the standard policy won't go far if your ring is expensive or if you lose it. So, if your engagement ring costs $6,500 or $10,902 (the current average according to Lemonade in 2023), your policy is falling short by thousands.

Only about 17 percent of jewelry claims are paid out for loss or damage that isn't theft-related. In short, loss without theft is rarely covered. That's why your basic renters insurance is probably not enough for a ring that actually matters to you.

What to Do If the Ring Is Worth Anything

If your ring is worth more than the renters insurance limit (which it probably is), you need extra coverage. This means adding something called a scheduled personal property endorsement. It's also called a rider or a floater. Insurance people love different words for the same thing.

Adding this rider lets you fully insure the ring for its real value. It adds in extra protection for things basic renters insurance ignores. That includes accidental loss, mysterious disappearance, and damage.

So if you accidentally drop that ring off a balcony or it gets left behind on a trip, the rider has your back. Most companies won't even charge a deductible on these claims.

But here's the deal: if you want a ring added to a rider, you need an appraisal. You'll also need a receipt. A lot of people skip this. Around 25 percent of policyholders don't have updated documentation, which causes problems when they file claims.

Appraisals usually cost somewhere between $75 and $150 per item. It's a one-time thing, although many insurers want it updated every three years.

As for the cost of the rider, it's surprisingly manageable. Insurance companies like NJM and GEICO estimate that scheduling a ring costs about 1 to 2 percent of its value per year. So for a $10,000 ring, expect to pay $100 to $200 annually.

Some providers, like Lemonade, even offer temporary coverage for your ring during the time it takes to get that appraisal. That gives you a short safety net while you're waiting on paperwork.

Why It Matters for Renters

Only 37 percent of renters actually carry renters insurance at all. Of the ones who do, 60 percent have no idea their jewelry coverage is capped. That's a problem.

Renters in cities like Los Angeles, where 53 percent of homes are rentals, face higher risk. City renters are 2.3 times more likely to file a jewelry theft claim than people in the suburbs.

Also, it can cost you more, in the long run, to make a claim on your renters insurance than separately insuring your ring. Insurance data shows that filing a ring claim through renters insurance can raise your premium by 12 to 18 percent over the next three years especially if this isn't your first claim.

This is why some people use renters insurance only for theft and get standalone jewelry insurance for everything else. Specialized companies like Jewelers Mutual or BriteCo offer complete coverage without touching your renters policy. These standalone plans are useful if your ring is worth more than $5,000. They also give you more claim flexibility, especially if you often travel or are prone to ring mishaps.

Social trends also show more couples are choosing hybrid insurance setups. About 41 percent of engaged couples under 30 are splitting coverage, leaning on renters insurance for theft and third-party insurers for loss and damage.

Scheduling the ring means you'll need to stay organized. Claims require proof. You'll need photos, a receipt, sometimes a police report, and a recent appraisal. If you don't have all of that, your insurer might push back. About 15 percent of jewelry claims get denied for that reason alone.

And those appraisals can't be outdated. Recent data shows that 29 percent of scheduled jewelry items are undervalued because their appraisals weren't updated. Some companies won't even accept anything older than three years.

Should You Include Your Ring or Not?

Let's get to the answer. Should you include your ring in your renters insurance? Only if you're going to add a rider. Basic insurance won't cover most situations that could happen to your ring. Without a scheduled endorsement, you're left exposed.

If your ring is worth a lot, you need more than that default $1,000 cap. A rider protects you from loss, disappearance, and all those things renters insurance skips.

Also, the added cost isn't bad. Spending $100 a year to protect a $10,000 item sounds reasonable. Compare that to losing your ring and eating the full cost out of pocket. Seems like a smarter deal with a scheduled rider.

Some renters decide to skip all this and get separate jewelry insurance. That way, you don't touch your renters insurance at all and avoid the risk of higher premiums. Both options work, but skipping extra coverage altogether is risky.

If you're renting and own any ring that would be expensive to replace, you should either schedule it on your renters policy or take out a separate plan. Either way, don't trust a base policy to do all the work. It won't.

Renting doesn't mean you have to leave your stuff unprotected. You just have to know what you're really covered for and fix what isn't.