Diamond Insurance 101
Insuring Your Diamonds
Diamond Insurance 101
Insuring a diamond takes a bit of thought, planning, and shopping around. Diamond insurance isn't like
purchasing car insurance. It is quite different. Depending on the state that you live in, there are basically
three different types of policies that will cover diamonds, and all insurance policies that cover diamonds are
considered Marine type policies.
The first type of diamond insurance policy for diamonds is an Actual Cash Value policy. If the diamond such as a
Diamond is lost or damaged beyond repair, the insurance company will replace the diamond at today's market
value, no matter how much you paid for the diamond to begin with. This type of insurance policy for diamonds
actually is not that common.
The most common type of diamonds 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. This does not
mean that they will pay that amount it means that they will pay up to that amount. In most cases, the diamond can
be replaced at a lower cost.
The third type of diamonds insurance coverage offered for diamonds is Agreed Value. This is sometimes called:
Valued At.' This type of coverage is very rare. In the event that the diamond is lost or damaged beyond repair, the
insurance company simply pays you the amount that you and the company agreed upon. 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. If you live in an area with a high crime rate, you can expect to pay more for your diamond
It is important to remember that insurance agents are not qualified jewelers, and jewelers 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.
Don't rely on separate coverage to cover your diamond. For instance, if you diamond is stolen from your home, it
is probably covered on your home owner's insurance policy but the diamond probably won't always be in your home,
and once it leaves your home, there is no coverage.