Diamonds Insurance

How to Get Insurance for Diamonds

Insuring diamonds takes a bit of thought, planning, and shopping around. Diamonds insurance isn’t like purchasing car insurance. It is quite different. Depending on the country where you live in, there are basically three different types of policies that will cover your diamonds insurance.

All insurance policies that cover diamonds are considered Marine type policies in the States, for example.

There are basically three different types of diamonds insurance:

1. Actual Cash Value Policy - perhaps the best type of diamonds insurance, although not that common
2. Replacement Value Insurance - this is the most common type of insurance for diamonds
3. Agreed Value Insurance - sometime called 'Valued At', this type of diamonds insurance is rare

Actual Cash Value Policy

The first type of diamonds insurance is an Actual Cash Value policy. If the diamond is lost or damaged beyond repair, the insurance company will replace the diamond at today’s market value, no matter how much you paid for the diamond to begin with. This type of insurance policy for diamonds actually is not that common.

Replacement Value Insurance

The most common type of diamonds insurance is Replacement Value insurance. The insurance company will only pay up to a fixed amount to replace the diamond that was lost or damaged beyond repair. This does not mean that they will pay that amount – it means that they will pay up to that amount. In most cases, the diamond can be replaced at a lower cost.

Agreed Value Insurance

The third type of diamonds insurance is Agreed Value Insurance. This is sometimes called ‘Valued At.’ This type of coverage is very rare. In the event that the diamond is lost or damaged beyond repair, the insurance company simply pays you the amount that you and the company agreed upon. This is the best type of diamonds insurance to have, but it is rarely offered. If you can’t get Agreed Value coverage, Actual Cash Value coverage should be your next choice.

Do your homework before you get insurance for your diamonds

Your rates will be determined by the value of the diamond, the type of coverage that you select, and the area that you live in. If you live in an area with a high crime rate, you can expect to pay more for your diamond insurance coverage. It is important to remember that insurance agents are not
qualified jewelers, and jewelers are not qualified insurance agents. It is best to get a certificate for your diamond, and to provide the insurance company with a copy of that certificate. This leaves the insurance company less room for arguments over the actual value of the diamond.

Don’t rely on separate coverage to cover your diamond. For instance, if you diamond is stolen from your home, it is probably covered on your home owner’s insurance policy – but the diamond probably won’t always be in your home, and once it leaves your home, there is no coverage.

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