Aside from your home, car, and appliances/furniture, diamond jewelries and other kinds of jewelries is the next biggest investment. Given that they are valuable, it is then important to insure them. However, working or getting an insurance for your jewelries could be tricky. There are incidents when insurance companies would not cover whatever happened with your diamonds.
To avoid this kind of situation, it is important to completely study and research about the insurance companys policy regarding the diamonds. When applying for insurance for your diamond jewelries, make sure that you have the grading certificate and other certificates handed to you when you bought the diamond. This would ensure that the diamond you will be insuring will not be under question by the insurance company.
Even if you keep your diamond jewelry in a safe place at home, theft and robbery could still happen. Diamonds would also get lost when the prong or the mount supporting the diamond would come loose. Diamonds are indeed the hardest of gems, but that does not mean they are not destructible. Accidents could happen and eventually send your precious diamond jewelry into pieces. Keep the mentioned situations in mind when choosing insurance policies. Insurance policies should cover theft, accidental loss and damage.
Diamond insurance policies could be categorized into three:
Actual cash value. In this type of insurance, diamonds are replaced regardless of their initial cost. The insurance policy would depend on the current value of the diamond jewelry and not on how much it cost the owner before. This is the most preferable type of insurance for diamond jewelry, however, it could also be the most costly. Most jewellers would recommend this kind of insurance policy for those who own heirloom diamond jewelries or those with large diamonds.
Replacement value. This kind of insurance policy is more affordable however the owner of the diamond may not be able to get the real value of lost diamond. When an insured diamond jewelry gets lost or was stolen, replacement value insurance policies would replace the lost jewel at a lower cost than the lost diamond was purchased. Sometimes it is replaced with something that has lower carat. The reason why it is more affordable is that policy holders would only be paying to get to the value of the diamond, but customers would not be getting the same value.
Agreed value. This is the most rare kind of insurance policy but some would say that this is best policy that could cover your diamond jewelry. the owner and the insurance company would undergo negotiations and agree on the value of the diamond jewelry. When something happens to the diamond jewelry, the insurance company would be providing what is the agreed amount of compensation.
Insurance policy rates may be different based on the location and other factors. When getting your diamond jewelry insured, it is best to shop around and check different insurance company policies. Always make sure that the fine print will be not missed out. Some insurance company policies would have loopholes in them which could eventually go against you.