Why insure a Diamond?
1. Loss Coverage Purposes---Insurance for your diamond can be a very valuable piece of assett as it will protect you against any danger that may threaten the diamond, for example, your diamond can be stolen, lost in fire, damaged or simply "disappeared." When one of this happens, the insurance will come into effect and the company will try to replace your diamond with a "like" kind. Meaning that it will try to find a replacement diamond that best matches the diamond that is lost.
This insurance to most people give them a sense of assurance that even if something happens to the diamond, they know that they will be taken care of.
2. When your diamond is insured, the insurance company will periodically inspect your diamonds for any loose prongs, worn clasps or even loose stones. This is done to reduce the risk of greater loss for the insurance company. At the same time, they are watching out for your precious diamond too by periodically inspecting them, just think them as the diamond's guardian, always watching out for it.
3. Affordable Payment Plans--Insuring your diamond can be very affordable. Those premiums can also be paid in installments, using your credit card. To give you a rough idea, to insure a $10,000 worth diamond in Texas, the premium will be a mere $155 per year. That is a small price to pay for your precious diamond. Also some insurance companies will give you a better discount if you insure multiple jewelries through them, making the premiums even more affordable.
What are the requirements?
1. Get a Diamond's Appraisal--This appraisal is a document that will determine how much your diamond is "worth" for. This document is important when trying to purchase insurance for your diamond, as it will give the insurance company an idea on how much coverage you need for your diamond. Also based on the dollar value given by the appraisers, the insurance company can further determine a Replacement Value of your diamond should something happen to it.
2. Mounted Diamonds--Most insurance companies will not insure Loose diamond stones.
Their required that the diamond stones be mounted on your choice of prongs before they can insure it. However, there is one insurance company that will insure "loose" diamond stones, and it is Chubb Group of Insurance Company. They are considered to be at the top list of reputable diamond insurer. Chubb offers a type of policy called the agreed value policy. This policy means that if for instance the diamond is lost, Chubb will pay you the insured amount of the diamond itself, whatever the amount may be as long as it's a reasonable amount. They are famous for paying customers who are deprived of their diamond very quickly. All you have to do is to list your diamond with the amount that you think is appropriate for you and in the event of a loss, Chubb will simply pays you the same amount that you stated for your diamond.
Different type of diamond policy
1. Agreed Value--Chubb offers a type of policy called the agreed value policy. This policy means that if for instance the diamond is lost, Chubb will pay you the insured amount of the diamond itself, whatever the amount may be as long as it's a reasonable amount. They are famous for paying customers who are deprived of their diamond very quickly. All you have to do is to list your diamond with the amount that you think is appropriate for you and in the event of a loss, Chubb will simply pays you the same amount that you stated for your diamond.
2. Cash Value--If your diamond is lost, the insurance company will pay you the current cost of the diamond minus depreciation of the diamond.
3. Replacement Value--with this type of policy, when a diamond is lost, the insurance company will either pay you based on the insured value of your diamond, or they will pay you based on the actual amount of money that will cost them to replace for you the same diamond you had before. Insurance companies do have discount suppliers that will sell them diamonds at a lower price, so the insurance company may ask you to go to their supplier and pick out a "like" stone that is the best match to your previous stone. You have the right to demand a diamond that equals in quality to the diamond you lost.
How much does a diamond insurance cost?
Insurance for your diamond can vary by state. Usually it depends on the recurrence of theft within that state, meaning that if the state you are in have a long history on claims, it means that your the insurance will most likely cost a lot more than those state with a lower claim history. It's also advantageous when trying to get insurance for your diamond to have either the diamond's certificate or an appraisal.
Please beware that an appraisal that comes from the store that sells your diamond may not be the truest and most accurate appraisal. It's better to get your diamond appraised at an Independent Appraisers. Why? Because they are less biased when apparaising your diaond so that they can give you the most accurate appraisal value. These independent appraisers do not work for a specific jewelry store so their opinion are not influenced by anyone.
So remember, the appraisers that will give you a true and accurate appraisal for your diamond should be hired by you, and not by the jewelry store.
A diamond appraisal is generally quite lengthy. If your diamond's appraisal is described in one paragraph or one page, something is not right. A diamond can be described in length so that it reflects the details of your diamond.
Most insurance companies also require that you do not attempt to Over-Appraised your diamond. It means that if you pay $5000 for your diamond and you "request" that the diamond's appraisal value be $6000, the insurance company have the right to void your insurance.
You have to declare any facts known to you that may jeopardize your insurance for your diamond.
Shady and unreputable appraisers often do what their customers wish them to do, for example describing your diamond in a very short paragraph or they may also try to BUMP up the value of your diamond intentionally, thus over-appraising your diamond.
If the insurance companies suspect that either one of these is happening, they may cancel your insurance or worse, they may not cover your loss if something were to happen to your diamond.
Always be honest and try to get an appraisal for reputable companies. |
