Insuring a diamond involves a bit of thought, planning, and a lot of shopping about since it isn’t similar to buying car insurance - it is extremely different. Dependant on which state in which you live in, there exist essentially three different types of policies which can cover diamonds, and all insurance policy which cover the gems, are called Marine type policies.

Diamond Insurance

The first type of insurance for diamonds is know as Actual Cash Value policy. In the event the diamond is lost or damaged without any hope of fixing, the insurer should reissue the diamond at the current market price, no matter how much you put down for your stone to begin with but this sort of insurance policy is actually not that popular.

The most common type of insurance for gemstones is called Replacement Value insurance where the insurance company would just pay up to a fixed amount in order to compensate for the stone which was lost or destroyed. Nevertheless, this doesn’t mean that they will pay that price – it simply indicates that they’ll pay up to that amount though in a great many instances, the diamond can be replaced at a much lower price.

Another variation of coverage offered for gemstones is called Agreed Value and it’s sometimes called ‘Valued At’ however this type of coverage is extremely unusual. If the gemstone is lost or destroyed, your insurance company simply pays you the cost which you and your insurance provider agreed upon. That’s the best sort of coverage to have, however it is rarely offered therefore if you cannot get Agreed Value coverage, Actual Cash Value insurance would be the next best option.

Your rates will be determined through the monetary worth of your stone, the sort of coverage that you pick, and finally the region in which you reside. If you live in a place that has a heavy crime percentage, then you should plan to pay more for your diamond insurance coverage. It is critical to note that insurance brokers aren’t certified jewelers, and similarly jewelers aren’t qualified insurance brokers so it’s best to get a certificate for your diamond, and to provide the insurance agent with a copy of the certification. Such a thing gives your insurance provider a smaller amount of breathing room for disagreements regarding the true [value] of your diamond though do not rely upon a separate policy to cover the cherished gem! For instance, if your jewel is stolen from your home, it is probably covered on your home insurance policy – but, your diamond may not always be in your home, and as soon as it leaves the home, there’s no cover.