The pandemic did little to stop couples from splurging on engagement rings, a recent survey conducted by wedding planning website The Knot has found.
The company polled more than 5,000 Americans aged 18 to 54 who got engaged between January and November 2021 and found that the average engagement ring spend during the year was $6,000 – a slight jump from $5,900 in 2019, before the COVID-19 disrupted most people’s wedding plans.
Respondents who purchased natural white diamond engagement rings said it cost them an average of $6,800 while those who bought rings set with other gemstones – whether lab-grown or colored – paid about $2,500.
A person’s age also had an effect on buying behavior with millennials, or those aged 25 to 34, spending around $6,700 while Gen Zers, or those between 18 to 24, allocating an average of $4,100 for the ring purchase.
Additionally, about a third, or 30%, of respondents admitted to spending more than planned, up 9% from 2019 numbers. The study indicates how much money people are willing to spend on this piece of jewelry, highlighting the need for proper protection.
How does engagement ring insurance work?
Bridal magazine Brides defines engagement ring insurance as a “contractual means of risk management to protect [owners] from financial repercussions in the event of physical loss, theft, or damage.” The publication adds that coverage can be extended to other jewelry items, and can come in the form of repair, replacement, or cost reimbursement.
There are two ways to access this kind of protection. First, it can be included in a standard homeowners’ or renters’ policy. Coverage, however, “often offers just a fraction of an item’s worth, ” experts say. To cover the full value of expensive jewelry, policyholders may need to purchase a rider or extension. The simplest step, according to the financial information website Investopedia, would be to add a rider itemizing each jewelry piece to the current insurance policy. But this option comes with drawbacks.
“A jewelry claim filed against your homeowners’ policy could affect your entire policy,” Tyler Krowiorz, director of enterprise communications at specialist insurer Jewelers Mutual, told Brides magazine. “So, if your engagement ring was ever stolen or lost, your premium could go up or your eligibility for your entire homeowners’ policy could be affected at renewal.”
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The company polled more than 5,000 Americans aged 18 to 54 who got engaged between January and November 2021 and found that the average engagement ring spend during the year was $6,000 – a slight jump from $5,900 in 2019, before the COVID-19 disrupted most people’s wedding plans.
Respondents who purchased natural white diamond engagement rings said it cost them an average of $6,800 while those who bought rings set with other gemstones – whether lab-grown or colored – paid about $2,500.
A person’s age also had an effect on buying behavior with millennials, or those aged 25 to 34, spending around $6,700 while Gen Zers, or those between 18 to 24, allocating an average of $4,100 for the ring purchase.
Additionally, about a third, or 30%, of respondents admitted to spending more than planned, up 9% from 2019 numbers. The study indicates how much money people are willing to spend on this piece of jewelry, highlighting the need for proper protection.
How does engagement ring insurance work?
Bridal magazine Brides defines engagement ring insurance as a “contractual means of risk management to protect [owners] from financial repercussions in the event of physical loss, theft, or damage.” The publication adds that coverage can be extended to other jewelry items, and can come in the form of repair, replacement, or cost reimbursement.
There are two ways to access this kind of protection. First, it can be included in a standard homeowners’ or renters’ policy. Coverage, however, “often offers just a fraction of an item’s worth, ” experts say. To cover the full value of expensive jewelry, policyholders may need to purchase a rider or extension. The simplest step, according to the financial information website Investopedia, would be to add a rider itemizing each jewelry piece to the current insurance policy. But this option comes with drawbacks.
“A jewelry claim filed against your homeowners’ policy could affect your entire policy,” Tyler Krowiorz, director of enterprise communications at specialist insurer Jewelers Mutual, told Brides magazine. “So, if your engagement ring was ever stolen or lost, your premium could go up or your eligibility for your entire homeowners’ policy could be affected at renewal.”
For More: VISIT