Engagement Ring—Purchaser vs. Wearer

May 14, 2012

If an insured bought a diamond ring for his son to give to his fiancée, both of whom are living in a foreign country, and the father maintains ownership of the ring (at least until the son pays for it, which might be years down the road), would the homeowners policy cover loss to the ring? Would the appropriate inland marine homeowner endorsement for jewelry cover the ring? We ask this question because we believe there would be coverage, but we can hardly imagine that coverage is intended for this type of situation and are wondering if we are missing something.

Kentucky Subscriber

Whoever owns or has custody of the ring insures it; the son and fiancée may break up or anything could happen. The father bought the ring and has custody of it, why wouldn't it go on the basic schedule? The intent has nothing to do with the reality. Now, if the fianceé has custody of the ring, it's up to her to insure it because once it's given to her it is hers, regardless of what payment arrangements have been made between father and son. Foreign countries have insurance too; it's her responsibility to get it covered in her name.

 

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