Insuring your diamonds

To protect your diamond jewelry from theft or loss, it is important to insure those items. While you may suffer the emotional loss of a missing piece of jewelry, with adequate diamond insurance, at least you will be guaranteed back its monetary value.

To understand how to insure your diamonds and diamond jewelry, it is best to talk to an insurance agent. You could add it to your rent or homeowner’s insurance, or provide separate coverage for it. The insurance company will require a diamond certification to ensure the correct value and coverage for the diamonds.

Typically speaking, all policies covering diamonds are marine type insurance policies. The three categories in which diamond insurance can be divided into are:

Actual Cash Value If a loss of the diamond jewelry were to occur, the insurance company would replace the items at the current market value less depreciation.

Replacement is the most common type of insurance policy available. The appraisal amount represents two results. One is that the policy sets a certain limit at which the insurance company will have to pay regardless of the current price of the stone. Secondly, it can decide the amount upon which premiums will be based. Most insurance companies may replace the stone for an amount much less than what you paid for or at best at the same price. It is thus better to get an independent appraisal of the item before sealing the insurance policy coverage for your diamonds.

Agreed Value, as the name suggests refers to the amount as agreed by the insurance company and policy-holder. The company will pay you the agreed amount in the event of loss.