Sparkly new Valentine’s gift? Here’s how to protect it
Do you need coverage for the new bling you got for Valentine's Day? The answer is probably 'yes.'
“Engagement season” traditionally begins Thanksgiving Day and ends on Valentine’s Day, with around 40% of all proposals happening in this period each year. Second to Christmas Day, Valentine’s Day remains one of the most popular days to pop the questions, but with the average engagement ring costing thousands of dollars it’s important to quickly acquire appropriate insurance coverage for your expensive new token if you happen to be on the receiving end of a proposal.
In 2023, more than half of American consumers are expected to spend an average of $192.80 for Valentine’s Day – an increase from the $175.41 average spent in 2022 – with an overall total of about $25.9 billion spent on this year’s holiday, according to the National Retail Federation (NRF). If all goes as anticipated, it would make 2023 the second-highest year for Valentine’s Day spending since the NRF began tracking this data in 2004. The highest spending thus far was recorded in 2020, when consumers spent an average of $196.31. The NRF also predicts those between ages 35 and 44 will be the biggest spenders of all – averaging $335.71 for Valentine’s Day gifts and expenses.
More than $5.5 billion of this Valentine’s spending is expected to be on jewelry, but despite the extravagant price tag of some of these gifts, many recipients neglect to properly insure these pieces. According to a survey from ValuePenguin, 27% of those with $10,000 or more of jewelry in their home don’t have insurance for it. Overall, 62% of respondents to their survey said that, regardless of value, their jewelry isn’t insured, while 30% report having it insured through their renters or homeowners policy and 9% have separate coverage for these valuables.
There are a few options for consumers when it comes to protecting their valuables, with possibly the simplest being to add coverage for your new item to your existing homeowners or renters policy. ValuePenguin reports that, on average, adding $1,000 of additional coverage will cost about $12 annually, $5,000 in additional coverage would cost $60 and $10,000 of additional jewelry coverage would run you about $121.
Some insurers also offer standalone jewelry coverage, independent of a homeowners or renters policy, but these will often come at a higher premium than tacking a floater onto an existing policy.
Embedded insurance has become a hot topic as of late, with more consumers expressing interest in streamlining the coverage process by making insurance options available as part of their initial purchase of big-ticket items like jewelry. A recent retail products insurance study from Cover Genius showed that nearly half of consumers say they would increase the amount of money they spent and/or the amount of products they buy if offered insurance at checkout. Sixty percent of consumers told Cover Genius they would prefer purchasing insurance from a retailer at the point of sale rather than through third-party sources.
If you’re overwhelmed with where to start finding the appropriate coverage for your new jewelry, Travelers Insurance suggests the following steps to jumpstart the process:
- Read your existing homeowners or renters policy to find out what is currently included and what your coverage limits are.
- Make a list of all items you might like additional coverage for, including expensive or antique items, family heirlooms, artwork, silver, expensive hobby equipment or other high-value items.
- Attach a monetary value to each item you plan to insure. If you’re unsure of the value, consider having the item appraised by a professional. Keep documentation of the appraisal in case your insurer requests it.
- Ask your agent for a quote on a personal articles floater for your jewelry and other valuables – especially if the value for which you’d like to insure them exceeds your existing homeowners or renters policy limits.