Whether it comes as a complete surprise or you’re the one proposing, getting engaged typically rates as one of life’s most exciting and memorable moments – and for good reason. The love! The romance! And all the hopes and dreams for the future.
For many couples, getting engaged also means investing in a beautiful piece of jewellery to commemorate the occasion. If you’ve recently done exactly that, you may be wondering whether you need insurance to cover your shiny new belonging. Given that a recent report shows couples in Australia spend $5,700 on average for an engagement ring, that’s a question worth asking.1
So, what is the cost of jewellery insurance in Australia? Does standard contents insurance include engagement ring insurance? And what type of paperwork do you need if you want to make an insurance claim? The information below may help answer any insurance questions you have since you popped the question or said “yes” to a marriage proposal.
Is it necessary to get jewellery insurance for your engagement ring?
When deciding whether or not to get engagement ring insurance, factors to keep in mind include the emotional and financial distress that may result from the loss of something of such high sentimental and monetary value.2 Youi’s optional Accidental Loss or Damage covers your jewellery even while you’re overseas. You will need to add optional cover to insure your engagement ring while you’re out of the house. Youi’s Contents insurance defines watches, including smart watches, as jewellery. It’s a good idea to obtain – and regularly update – jewellery valuations.
Some high-end safes may offer protection for your valuables while they’re at home, but they’ll require a significant investment of their own, up to $1,500-$2,000.3
Something else to consider is that engagement rings, due to their significance, are meant to be worn and enjoyed every day, even when you’re away from home. Some jewellery insurance policies might also provide coverage against loss and damage in these situations.2
Can I claim for lost jewellery on my home insurance?
Most home insurance policies provide some level of cover for jewellery – including engagement rings – if items are lost, accidentally damaged or stolen during an insured event while they’re inside your home. However, some policies may set limits around how much they’ll cover jewellery for in the event of an insurance claim or may not require you to specify the exact replacement value of your engagement ring.2
Youi Contents insurance covers your jewellery if you specify the replacement value of any piece, pair or set that’s worth more than $15,000, and then select a total replacement value for all the other jewellery items that you own.4
Once you’ve done this, your jewellery is covered against loss or damage caused by an insured event at your home, including theft, fire and flood.4
What if I lose my engagement ring when I’m away from home?
Youi can provide cover for this too, when you add an optional cover for your jewellery to your Contents insurance policy.4
“If you want the additional peace of mind knowing your engagement ring, or any other valuable item that’s portable, is covered away from your home, you can elect to add the Contents Accidental Loss or Damage optional cover for it,” says Mervyn Hartley, Youi’s Head of Product for Home and Small Business.
“The cover even extends worldwide.”
Can you get short-term jewellery insurance?
You may be wondering about this if you’re about to head off overseas on holiday, for example, on your honeymoon.
“If you have chosen cover for your jewellery with your Youi Contents insurance policy, you could consider adding Accidental Loss or Damage for the jewellery over the period that you’ll be away,” says Hartley. “This will cover the jewellery worldwide.”
“Heading overseas on holiday can be a wonderful experience, but there’s also usually a lot to organise and everyone has their own needs. So, whether you already have a Youi policy or not, speak with one of our advisors to decide which policy options may work for you.”
Is jewellery insurance the same thing as watch insurance?
If you have a Youi Contents insurance policy, watches fall under the definition of jewellery, along with bracelets, necklaces, earrings and, of course, rings – including engagement rings.4
Jewellery items can also be smart devices, so if you’re thinking “do I need Apple Watch insurance?” for example, Youi’s Contents insurance can cover that too.4
How much does jewellery insurance cost?
The cost of a contents insurance policy that provides cover for your jewellery depends on a number of things, including how much you insure the belongings for and the level of security you have at your home.5
“When you’re working out what that amount might be, it helps to keep in mind that contents policies will typically be new-for-old,” says Hartley. “This means the insurer will either replace, or pay to replace, an item with a brand-new equivalent.”
Before settling on a replacement value for your engagement ring, you might like to consider getting it professionally valued so you have a clear idea of exactly what it’s worth.2
“For unique items, including engagement rings and other pieces of jewellery, it can also be a good idea to get these valuations done regularly,” says Hartley, who explains that you might be surprised how much more a piece of jewellery costs now, compared to when you originally purchased it.
“You should also review your cover for jewellery and sum insured, with this in mind whenever your contents insurance policy comes up for renewal or if you make any large purchases, including buying an engagement ring.”
How do I get my jewellery valued for insurance?
If you decide to get a valuation done on your engagement ring or any other piece of jewellery for insurance purposes, it’s important to note that people advertising valuation services in Australia don’t need to be officially qualified or certified.6
You may prefer to use a valuer who’s registered with a professional body such as the National Council of Jewellery Valuers (NCJV), which requires its members to undergo training in valuing and has a code of ethics which dictates how members operate.6
Will insurance cover the full value of my engagement ring?
This can depend on whether the insurance policy you choose allows you to cover the full value of your engagement ring and, if it does, whether you’ve selected an appropriate value for it.2
At Youi, Contents insurance allows you to nominate the value of your jewellery by selecting a lump sum value for items $15,000 or less, and for individual pieces, sets or pairs worth more than $15,000 you can choose a specific value.4
What paperwork do I need to make an insurance claim?
At Youi, if you need to lodge a claim for your engagement ring, you may be asked to provide proof that you own it and proof of its value.4
“It’s also really useful if you take and retain photos of your engagement ring and any other contents you’re insuring, as these can support a claim if you experience a loss,” says Hartley.
Everyone’s circumstances are different so if you still have questions about jewellery insurance, speak to one of our advisors or start a quote. Then you can get on with the fun of planning your wedding!
1 Source: Easy Weddings – 2024 Australian Wedding Industry Report
2 Source: Canstar – Engagement Ring Insurance, March 2024
3 Source: CHOICE – How to buy the best home safe
4 Exclusions, limits and additional fees may apply. See the Home & Contents PDS for full details.
5 Source: CHOICE – How to find the right home and contents insurance policy, October 2023
6 Source: NSW Government, Fair Trading – Jewellery
