Legal Question in Insurance Law in Missouri

The insurer's argument isn't ridiculous at all. In fact, it's probably correct.

In some states, a woman is entitled to keep her engagement ring even if the engagement is called off. Under such a system the ring would be your fiancee's property and not yours -- and an insurance policy that covers only your own property would not have to pay for its loss.

In some states the ring becomes the recipient's property when the couple gets married. In others, the man may or may not be able to get it back later depending upon who calls off the engagement and, in some instances, why.

I am not a Missouri lawyer, but your question made me curious so I did a bit of research. I can't offer an authoritative answer, but it appears that Missouri treats an engagement ring as a conditional gift. That means that your fiancee is entitled to keep it unless she breaks off the engagement for reasons that are not your fault.

If I'm right about that, then the ring is hers unless and until she calls off the engagement. Since that hasn't happened, the ring belonged to her when it was stolen. (It belongs to her even now, though of course she may never see it again.) That's a strong argument in favor of the insurance company. It may not be ironclad, but it's far from ridiculous.

Moreover, the facts you have given seem to favor the insurer. After all, you told your fiancee the ring was hers. Perhaps more importantly, you told her to get it insured. It makes little sense for you to tell someone else to insure your property, especially if you believe your own insurance covers it already. A more sensible interpretation is that you believed you were making a gift.

Even if the ring did not become your fiancee's property when you gave it to her, your insurance still might not cover this loss. Homeowner's insurance often does not cover the theft of personal property unless it was taken from the policyholder's home. Presumably this theft occurred somewhere else. If that is the case, then the insurer can justifiably deny your claim on this basis. Depending upon the language of your policy, there may be other legitimate reasons for the company to deny your claim. Note that, even if the company's original reason turns out to be legally incorrect, it still will not have to pay if there is another, valid reason for it to deny your claim.

You ask what the best way is to handle the situation. I recommend reviewing your insurance policy with a lawyer and getting her opinion about whether the ring really was a gift. Hopefully her answer will be more encouraging than mine.

Good luck.