Insuring your diamond involves some thought, preparation, and a lot of shopping about because it’s not like purchasing insurance for your vehicle - it is very different. Dependant on which state that you reside, there exist basically three variants of policies that can cover diamonds, and all insurance policy that covers the gemstones, are considered Marine type policies.
The initial type of insurance policy designed for diamonds is an Actual Cash Value policy. If your diamond is misplaced or damaged beyond fixing, then your insurance company will reissue your diamond at the current market place value, no matter how much you paid for the stone originally however such a insurance is really not very popular.
The most popular variation of indemnity for diamonds is called Replacement Value insurance where the insurer would just pay up to a fixed amount to compensate for the stone that ended up misplaced or damaged beyond repair. However, this does not indicate that they’ll pay that amount – it simply indicates that they will pay up to that amount though in many cases, the diamond may be compensated for at a lower price.
The third type of insurance available for gemstones is called Agreed Value and is occasionally dubbed ‘Valued At’ but this type of coverage is extremely unusual. If the diamond is misplaces or destroyed, the insurance company just covers the price which you and the company decided on. That is by far the best type of insurance to own, though it’s not usually offered so if you can’t obtain Agreed Value insurance, Actual Cash Value coverage should be your next best alternative.
The rates will be determined by the monetary worth of your stone, the type of coverage that you pick, and finally the region in which you reside. If you live in an area that has a heavy crime percentage, then you can expect to pay a larger amount for the diamond insurance policy. It’s important to remember that insurance agents are not qualified jewelers, and jewelers are not qualified insurance brokers therefore it’s a good idea to get a certificate for your diamond, and to provide the insurance agent with a xerox of the certification. Such a thing leaves your insurance firm less room for arguments over the actual [value] of the diamond but don’t rely on separate coverage to cover the cherished gem! For instance, in the event your diamond is stolen out of your home, then it’s likely covered by your home insurance policy – however, your stone may not be in your house all the time, and as soon as it goes out of the house, there’s no coverage.