Have you been thinking lately about Insuring your diamonds? Diamond insurance isn’t like buying an automobile insurance policy. It is an all together different process. It takes a great deal of time and planning. It depends on where you live, but essentially there are three kinfd of insurance policies that will cover diamonds.
The insurance policy that most people acquire for their diamonds is called Replacement Value insurance. Most insurance companies pay up to a set amount of money to replace the diamond that was misplaced or if the diamond has been damaged beyond repair. However, the insurance company does not always pay that amount of money, just that they may pay up to that amount of money.
Another type of insurance policy, although not as common, that some people will buy to cover their diamonds is called an Actual Cash Value policy. So if your diamond is lost or misplaced or damaged beyond repair, this policy will cover the replacement of your diamond at today’s market price, and it does not even depend on how much you originally paid for the diamond.
A third kind of insurance coverage extended for diamonds is called an Agreed Value policy. This insurance policy out of all the policies is the best type of insurance to have for your diamonds. However, it’s seldom offered. If your diamond is misplaced, lost or damaged beyond repair, then the insurance company just gives you the sum of money that you and the insurance company agreed upon. So your first choice for a diamond insurance policy would be the Agreed Value policy and your second choice would be the Actual Cash Value policy.
Your rates are specified by the type of insurance coverage that you choose and also by the appraisal of your diamond. It is always a good idea to acquire a certificate for your diamond, and to give the insurance firm a copy of the actual certificate. In this way then the insurance firm can not debate and argue over the real value of your diamond.
Many people do not invest in separate insurance coverage to cover their diamonds and that is a mistake. They will just use their home owner’s insurance policy and believe that will cover it. And granted, if you diamond is stolen from your property or house, it is most likely covered by your insurance companies home owner’s policy. However, your diamond likely will not always be in your house, and when it leaves your house and home, then at that time there is no insurance coverage for your diamond.