Diamond Insurance

For many people a diamond ring is one of the most important and costly purchases in their lives, therefore they try to take much care protecting their investment.

As a rule people cover jewelry under their homeowner’s policy. However, this can only protect you from losing your diamond or having it thieved from your home. One of the most popular ways to protect your investment is to insure your diamond. This way your diamond is usually covered if lost or stolen both at home and away from it.

To have your ring insured, turn to a professional appraisal first. Then send a copy of the appraised ring to your insurance agent, who may also request photos of the ring and stones and possibly a gem print (a computer scan of your diamond ring). All the documents make your diamond ring easily identifiable if it is stolen.

There are three types of diamond insurance conveniently offered to protect your diamond ring. They are:

1. Replacement Value. This is the most popular policy. The amount of money for compensation, in this case, is agreed upon by the two parties when the agreement is being created. The insurance company guarantees to pay you the total sum.

For example, if you buy a diamond ring at a price 10K, and this value was confirmed by the appraiser, the insurance company will reimburse you with a replacement value policy of up to this very sum. The insurance company will also pay up to 10K for the ring if it is lost or stolen in the future.

2. Actual Cash Value. This type of insurance means that the owner will be given the actual market value of the diamond as the replacement of his investment.

3. Agreed Value. The insurance company and you will discuss on the exact value of the diamond ring or gemstone. Agreed Value is a very rare type of policy.