If you have travel plans in your future, think carefully about not taking your expensive diamonds and jewelry. The risk of theft, loss and damage increases as soon as you start your trip. Insuring your diamonds is encouraged and gives you a greater since of security but does not secure the luxury of having your diamonds and jewelry in your possession while away from home.
Some insurance companies only provide domestic coverage due to the fact that the risk of theft is much higher in foreign countries. Unfortunately if you have ever encountered the unexpected of loosing your wedding set or having your diamonds and jewelry stolen you understand the importance of taking necessary precautions. There are many stories of despair, do not add to the collection.
For many people a diamond ring is one of the biggest purchases of their lifetime, so it is important that you protect your investment. One of the most popular ways to protect your investment is to insure your diamonds. There are three types of diamond insurance that are conveniently offered, here are some tips.
Usually many types of jewelry including diamond rings are covered under your homeowner’s policy, but this only covers you from losing your diamond or having it stolen from your home. If you wear your diamond ring, you should option for a scheduled personal property policy. This way your diamond is usually covered if lost or stolen at home or away from it.
Three types of policies that are offered are:
- Actual Cash Value, in which the insurance company will give you the actual market value of the diamond in order to replace it.
- Agreed Value, which is a very rare type of policy, in which the insurance company and you the owner, will negotiate on the proper value of the diamond ring or stone.
- Replacement Value, which is the most common of the three. This is where the insurance company will reimburse you up to a specific amount agreed upon by the two parties when the policy was created.
For instance, with a replacement value policy, if you spent 10K on a diamond ring, and the appraiser has confirmed the ring is worth 10K, the insurance company will insure you with a replacement value policy of up to 10K. If the ring is lost or stolen in the future, the insurance company will usually pay up to 10K for the ring.
In order to have your ring insured, you will first need to have it appraised and to send a copy of the professional appraisal to your insurance agent. Besides an appraisal, your insurance agent may request photos of the ring and stones. If you are planning on buying a diamond ring or own a diamond ring, look into insuring it.
