Engagement Ring Coverage Issue

We would like your opinion concerning who has an insurable interest in an engagement ring. It has always been our opinion that when a man proposes marriage and gives the woman a ring that it is considered a “conditional gift.”

There appear to be two schools of thought as to who should insure the ring. Some feel the man has an insurable interest in the ring even though it is no longer in his physical possession. Others say that since the ring is now in the woman's possession the interest is hers and she should insure it.

Another alternative would be to write a personal articles floater in both names, but few companies will do this. What are your suggestions?

Illinois Subscriber

You are correct in that the engagement ring is a conditional gift – that is, one given on condition that the promise to marry is fulfilled. Many courts hold that gifts of value to a betrothed, including an engagement ring, can be recovered if the engagement is dissolved by mutual consent or if it is unjustifiably broken by the donee.

However, an engagement ring is a gift. For this reason, it should be insured by the recipient, since it became her property and is in her possession. There are cases where the giver insists they be the one to insure the ring; if the underwriter agrees this could be done.