Diamond Insurance

Buying insurance for your new diamond and any future piece of expensive jewelry can prove to be very worthwhile. Often times the value of the wedding ring can be similar to the value of the car you own. If you own car insurance, don’t you think it may be wise to do the same for your cherished diamond. After all in this case it is not just about the financial value as much as the sentimental value of the engagement ring that you purchased.

I will be going into the things to consider when buying diamond insurance, dealing with the diamond insurance company and the reasons why you should cover your diamond with an insurance policy.

Diamond discovered in Lesotho

Dealing with insurance companies can be quite a hassle. Many times if you would like to include your jewelry into your homeowner’s insurance you will have to buy a rider

When the rider on your homeowner’s insurance is purchased it should be immediately active. Ideally This rider should be purchased at the time the diamond is also purchased or at least very soon thereafter. Insurance companies will probably request additional documentation and appraisals as to the value of additional jewelery.

If you would like to keep your homeowner insurance separate from your diamond ring insurance this is also possible. Depending on your type of policy, diamond, neighborhood and safety of your home, diamond ring insurance companies will charge approximately $15.00-$25.00 in monthly premiums for every $10,000 in diamond value.

We will be discussing the three principle types of policies that you can purchase for your diamond and which will suit you best. These include: the Agreed Value Policy, the Actual Cash Value Policy, and Replacement Value Policy.

The best type of coverage contract that you can enter into is the Agreed Value policy. It is just as it sounds. You and the diamond ring insurance company enter into an agreement on the value of the diamond and that is the number that will be paid out in case of loss or damage. Unfortunately these types of policies are rare but as an educated consumer you should shop around and request this type of policy.

The second best type of policy that you can buy is the Actual Cash Value Policy. With this type of policy the insurance company covering your diamond will payout the actual current value of your diamond in case your diamond. This is beneficial for you if your diamond may have appreciated up until the loss. Or detrimental if it depreciated.

The most commonly available type of policy is the Replacement Value Policy. In these types of policies, the diamond insurance company is required to only pay out up to a certain amount to replace the lost or damaged diamond and setting. Often times the ring is replaced by the insurance company at a lower value.

If you do not have an appraisal for your diamond ring (and other jewelry) the insurance company with offer to do one for you. If your diamond is not a Certified Diamond with an authentic certified Diamond Report, the Insurance Company may see this as an opportunity to value your diamond with as a lower quality diamond. (Certified Diamond Retailers)

Certified diamonds have a report that has to taken into account as fact when appraising your diamond and ring. On the other hand, a non-certified ring will be appraised at the will and opinion of the insurance appraiser. The appraisal leaves much room for biased interpretation of the quality grading (cut, clarity, color, carat weight) that may not go in your favor. Hence one of the main reasons to purchase Certified diamonds with a grading report.

A diamond that has a Certificate restricts the appraiser from any misinterpretations in quality and value. Ensuring the correct value protects you in case of a loss of the diamond engagement ring. If the unfortunate should occur and you do lose the diamond, the insurance provider is required to replace the diamond and setting as exact as possible to value and characteristics that are mentioned in the appraisal.

Make sure to have current appraisals when buying the coverage so that the value that is considered is as close to current real value as possible. It is suggested to have your insured jewelry appraised every 3-5 years.

Since insurance companies love to collect premiums and hate to pay out claims. The higher the value the higher the premium. However the lower the value the lower the payout in case of a claim. Be sure to have an accurate assessment of your diamond in order to not fall in the hands of the insurance company games. In addition be sure to keep your certificates (insurance and diamond) as well as appraisals in a safe place to be able to present and prove appraised value.

In my experience the following are the top three reasons to purchase insurance for your valuable diamond jewelry:

One of the most unpleasant ways to lose a diamond is from theft. This is much more prevalent than we would like to admit and can occur in almost any neighborhood. Paris Hilton’s home was broken into and had her Jewelry collection stolen from her home in an upscale neighborhood in Los Angeles. It can happen in any occasion that you take the ring off; Whether it be in the spa, nail salon, or even when washing your hands in a public bathroom.
Accidental loss will happen when you least expect it and can come in many forms. Most common are dropping down a drain or toilet. Also a prong on the setting can be weakened from years of wear and tear can loosen enough to allow the diamond to fall out and chances are you won’t notice until it is too late.
Lastly, Even the hardest of gems and stones have a breaking point. Sure a diamond is know to be the hardest stone known to man but at the end of the day a blow at the right place and angle can damage or break the crystal structure. In a case like this your investment can suddenly lose thousands of dollars in value.

Protect your peace of mind and precious investment. Diamond wedding rings are valuable pieces of jewelry and thus are difficult to replace. At the end of the day it is better to be safe than sorry.

********************************************************************************************

Back to Home |Diamond Search Tool| Diamond Ring Trends

Diamond Price Guide| Online Jeweler Ratings | Site Map

********************************************************************************************