Diamond Insurance Info And Tips
Owning diamond jewelry is a great investment to have. Thus, it is an investment worth protecting if you want to own it for a long time and ensure your minimize your loss in the event of theft or a natural disaster. With that said, how do you find good diamond insurance to protect your investment? The best way to obtain diamond insurance is to educate yourself on insuring this precious gem. This is necessary to make sure you receive the best benefit if you experience a loss. This type of coverage is not like basic gold jewelry insurance coverage, and you local insurance agent may not be versed in this area. Thus, it is up to you to educate yourself and have the knowledge when you shop.
Diamond insurance has three forms, and they are Actual Cash Value, Replacement Value, and Agreed Value. An Actual Cash Value means you are insuring your diamond at today’s market rate and not the purchase price. So, if you brought your diamond for $15000 and it is worth today $20,000. You would get the $20,000 and not the $15,000. In a Replacement Value policy, the insurer will pay a specific amount to replace the diamond, which might mean less money for you. An Agreed Value is the binding amount that you and your insurer agreed upon initially, and you will receive that amount in the event of a loss. Replacement Value is a common policy used today, and most carriers will direct you to this policy. However, this does not mean this coverage should be the choice you select. You might find the Agreed Value and Actual Cash Value better choices so weigh the pros and cons on the three choices before you make a decision.
Diamond insurance policies are usually written as a rider to your homeowner’s policy or rental insurance policy so request it from your agent.
If you have to file a claim, do not take the insurance appraisers value as the correct amount for your diamonds. Obtain instead an independent appraiser because you do not want to pay for higher value and receive less than the diamond value when you settle the claim.
Insurance. You carry a policy for your vehicle, your home, and for your health. But is your diamond jewelry covered as well? Because believe it or not, most homeowner and renter insurance only covers diamond jewelry if it is stolen from your home, or if a diamond falls out. If diamond jewelery is stolen or lost while you are wearing it away from home, your homeowners policy won’t cover replacement. That’s why so many people opt for diamond insurance.
But what is diamond insurance? Basically, diamond insurance is a separate, unique policy that can stand alone, or be added as a rider to your homeowners insurance. In both cases, there are three types of diamond insurance policies you can choose from:
Actual Cash Value
These three different types of diamond insurance are basically what they sound like. With an actual cash value policy, you would receive the actual market value of your lost or stolen jewelry in the event of loss or theft. Replacement value policies pay up to a certain amount for replacement, which is agreed upon when the policy is created. Agreed value, which is rare, is a policy where you and the insurance company negotiate the value of the lost or stolen jewelry. No matter the type though, diamond insurance is just as important as other types of insurance you already carry.
For many couples, choosing an engagement ring and matching wedding band is an important decision. Not only is it important because of the commitment it symbolizes, but it’s also important because of the money that will be spent on it. That’s part of the reason that when you are considering engagement and wedding rings, you also need to think about getting diamond insurance.
But why do you need diamond insurance? For the same reason you need other types of insurance – to protect against loss, damage, or theft. For example, if someone stole your car and wrecked it, your insurance would pay to have it repaired or replaced. Diamond insurance works the same way – if someone stole your engagement and/or wedding ring, your insurance would pay to have it replaced. Of course, it’s not just theft you have to worry about.
Diamonds can and do fall out of even the highest quality jewelry, and most of the time, are lost for good. With diamond insurance, replacing the lost diamond would be covered by your policy. And if you were lucky enough to find the lost diamond, your diamond insurance would pay for the repair. So if you are looking for the ideal diamond engagement ring and/or wedding band, don’t forget diamond insurance.