Insuring Your Diamonds

Insuring a diamond takes a fair amount of thought, planning, and due dilligence. Diamond insurance is nothing like purchasing car insurance. It's actually quite different. Depending on the state that you reside in, there are essentially three types of policies that will offer coverage for your diamonds, and all insurance policies that cover diamonds are considered "Marine type policies".

The first type of insurance policy for diamonds is an Actual Cash Value policy. If the diamond is lost or irreparably damaged, the insurance company will replace the diamond at the current market value, no matter how much you paid for the diamond at the outset. This type of insurance policy for diamonds is not actually that common.

The most common type of insurance for diamonds 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 the full amount – it simply means that they will pay up to that amount. In most cases, the diamond can and most likely will be replaced at a lower cost.

The third type of coverage offered for your diamonds is "Agreed Value Cover". This is sometimes also called ‘Valued At.’ This type of coverage is very rare. In the event that the diamond is lost or irreparably damaged, the insurance company only pays you the amount that you and the company agreed upon. This is the best type of 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.

Your rates are 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 dispute over the actual value of the diamond.

Don’t rely on separate coverage to cover your diamond. For instance, if your 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, it is no longer covered.

Since you most likely paid a good deal of money for your diamond jewelry, you could do a lot worse than taking some time to consider the most appropriate coverage for your needs when insuring your diamonds.

Insurance Articles: http://www.internetionalmedia.com/Category/Insurance/

John Saxon is a syndicated columnist with various top article directories and digital news media. My articles cover a wide spectrum of interests most of which are aimed at helping us better understand the little things we do each day without thinking too much about the long term effects. Get the best price on your next diamond purchase, visit my recommended source for Diamond Wholesale!

<a href="http://www.internetionalmedia.com/Article/Insuring Your Diamonds/8"><b>Insuring Your Diamonds</b></a><br> Here's a really informative article entitled "Insuring Your Diamonds" for your reading pleasure...

	Add to del.icio.us		Add to Cosmos		Digg this
	Add to Spurl		Add to Blinklist		Furl
	Reddit		Fark		Yahoo

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated