Why is Steve able to purchase insurance for his wedding ring?

Steve is able to purchase insurance for his wedding ring because it represents a pure risk. Pure risk involves situations where the outcome is either a loss or no loss, with no possibility of a gain. In the context of insurance, pure risks are insurable because they fulfill the criteria of an insurable interest; that is, there's a risk of loss associated with the ring (such as theft, loss, or damage) which Steve wishes to mitigate through an insurance policy.

In contrast, while the wedding ring being a valuable item factors into the decision to insure it, the critical aspect for obtaining insurance is the concept of risk. Items considered collectibles may also be insured, but again, pure risk remains the foundational characteristic for insurability. Lastly, labeling the ring as a necessity does not directly relate to the notion of risk and insurance. Necessities can exist without inherent risks worthy of creating an insurance policy. In this case, it is the pure risk that makes the need for insurance applicable.