Why you Should Insure your Wedding Ring
Falling in love can be a beautiful thing. For most couples in love, the next best thing is getting married and hopefully spending the rest of their lives together. Along with the wedding costs are the costs that come with buying a wedding ring.
In the past, a wedding ring was a big deal for many couples, with the ring signifying unity and an ever-lasting bond. What most people don’t tell you is that it also meant more expenses – either in the form of debt or insurance costs.
Not much has changed, except that a new trend among millennials is that the need to spend thousands of Rands on a diamond ring is fast losing appeal.
In South Africa, the average spend on a wedding ring is between R30 000 and R40 000. The rule of thumb in the past was to spend about two months’ salary on the ring.
In recent years, consumers have become more price-sensitive, which means that they are considering insurance less.
Here are some good reasons to insure your wedding ring:
By getting your wedding ring insured you are protected for potential financial ruin in the event that you need to replace the ring following theft or loss.
It’s important to update the insured value of your ring regularly, so that it reflects its current replacement value.
For high value rings, you would need to have a valuation certificate. They would have to be insured for their replacement value. Nowadays, policies often include a clause giving your insurer the choice to “repair, replace or pay cash”. An insurance appraisal represents the top value for settlement of a claim.
You also need to keep in mind that the value of your ring is affected by inflation and other factors, such as the exchange rate of the rand against foreign currencies and the gold price.
It’s easy to insure your wedding ring. Under an all-risks policy, your ring is covered anywhere in the world.