Jan 10
28
Like any other valuable possessions, diamonds also need to be insured. However, insuring it is very different from insuring a car. There are three common types of insurance policies of jewelries and all these policies are classified as marine type policies. One type of jewelry insurance policy is the actual cash value where the company replaces your lost or damaged stones, which can no longer be repaired, based on its current market value. This type of insurance coverage is not very popular.
Another type of insurance coverage is the replacement value policy and is the most common type. In this policy, the insurance company pays only up to a fixed amount when your diamond is lost or damaged beyond repair. The company will only pay up to the pre-agreed amount and most often replacement is at lower cost. The agreed value insurance policy is also called “At” and is very rare. The insurance company pays you the pre-agreed amount in the event that the diamond is lost or damaged beyond repair. Among the three types of policies, the agreed value is the best one and the actual cash value is the second choice.
The insurance company will determine your rates based on the value of your stone and the type of coverage you have chosen. The area where you live in is also considered in determining the rate of your policy. For instance, if you are located in an area where the case of robbery or theft is high, the cost of your policy may be higher. Before getting insurance for your diamond, make sure that the company is trusted and reliable. It is a good idea to get some background information on the company and how long it has been operating.
You will also be required to provide them a copy of the diamond certificate, as this will give them the value of your diamond. Be vigilant with the terms and conditions of the insurance coverage that the company offers.
By Ramir Sarmiento
