Insuring a diamond takes a bit of thought, planning, and shopping around. Diamond insurance isn't like purchasing car insurance. It's a whole different story. It would depend on the state where you live, but there are three types of policies that will cover diamonds, and these are all considered Marine type policies.
The first is an Actual Cash Value policy. If the insured diamond gets lost or damaged beyond repair, the insurance company will give you today's market value. This kind of policy occurs infrequently.
The most common type of insurance for diamonds is Replacement Value insurance. The insurance company will only pay up to a fixed amount to replace the diamond that was lost or damaged beyond repair. Remember, there is just a maximum amount; you might or might not get the whole amount. In most situations, the company will pay a lower cost for the diamond.
The third type is Agreed Value. This is also known as Valued At. This type of coverage is very rare. This means that if your diamond needs to be replaced, the company will only give you the amount that you both agreed on. This is the best type of insurance to have, but it is rarely offered. If you can't get Agreed Value coverage, Actual Cash Value coverage should be your next choice.
Your rates will be determined by the value of the diamond, the type of coverage that you select, and the area that you live in. You'll have higher rates if you live in an area with a high crime rate. It is important to remember that insurance agents are not qualified jewellers, and jewellers are not qualified insurance agents. It is best to get a certificate for your diamond, and to provide the insurance company with a copy of that certificate. This leaves the insurance company less room for arguments over the actual value of the diamond.
You shouldn't rely on separate coverage to insure your diamond. For instance, your home owner's insurance policy might be able to cover your diamond, only if it was stolen from your house.
The first is an Actual Cash Value policy. If the insured diamond gets lost or damaged beyond repair, the insurance company will give you today's market value. This kind of policy occurs infrequently.
The most common type of insurance for diamonds is Replacement Value insurance. The insurance company will only pay up to a fixed amount to replace the diamond that was lost or damaged beyond repair. Remember, there is just a maximum amount; you might or might not get the whole amount. In most situations, the company will pay a lower cost for the diamond.
The third type is Agreed Value. This is also known as Valued At. This type of coverage is very rare. This means that if your diamond needs to be replaced, the company will only give you the amount that you both agreed on. This is the best type of insurance to have, but it is rarely offered. If you can't get Agreed Value coverage, Actual Cash Value coverage should be your next choice.
Your rates will be determined by the value of the diamond, the type of coverage that you select, and the area that you live in. You'll have higher rates if you live in an area with a high crime rate. It is important to remember that insurance agents are not qualified jewellers, and jewellers are not qualified insurance agents. It is best to get a certificate for your diamond, and to provide the insurance company with a copy of that certificate. This leaves the insurance company less room for arguments over the actual value of the diamond.
You shouldn't rely on separate coverage to insure your diamond. For instance, your home owner's insurance policy might be able to cover your diamond, only if it was stolen from your house.