Diamond Insurance TipsBy
Working with Insurance companies can become very tricky when it comes to replacement of lost or stolen jewelry. The Insurance companies usually require an extra rider clause to your homeowner’s policy for any jewelry valued over $300.00.
This rider must be purchased and in force at time of purchase. In addition Insurance Companies require documentation of all jewelry items via current jewelry appraisals. This is only the beginning. If you do not have a Certified Diamond with a proper Diamond Report, the Insurance Company will see this as an opportunity to attempt to replace your diamond with a lower quality diamond. Remember an Insurance Appraisal which values a non-certified diamond is only someone’s opinion of the diamond quality grading and value, leaving much room for interpretation when the issue of diamond quality is being addressed.
This is another very important reason to require a Certified Diamond when you make any important diamond purchase. A diamond that has a Certificate allows no room for misunderstanding on anyone’s part when it comes time for replacement because of loss or damage. The Insurance Company is required to replace all items in “LIKE AND KIND” no excuses no deviations of quality or size regardless of current market prices. Of course you must have current appraisals. I suggest current appraisal means at least every 3 years.
Another important area is “coverage or insured amount”. All insurance premiums are base on “Replacement Value” covered by the current jewelry appraisal. On the one hand Insurance Companies love to collect high premiums based on inflated Replacement Values, on the other hand they require any payouts to be fully documented and can choose to press the client to accept a lower payout if their jewelry documentation is not completely in order!
Our experience suggests that the greatest need for insurance comes from the following causes:
Theft is more prevalent than most people expect. A diamond ring left in a suitcase while on an airplane or enjoying the beach can suddenly disappear. A diamond ring left for just an instant in a public washroom will probably never be seen again. Uninvited “guests” in your home seek out your jewelry drawer in your bedroom dresser for a quick touch of larceny.
Accidental loss happens when you least expect it. A single prong weakened by years of wear can suddenly release its hold on your beautiful diamond and you’ll not likely notice the diamond loss until it is too late. You wouldn’t believe all the diamonds that fall out of mountings while working in the yard or doing dishes.
Damage can occur for even the hardest of gems. While a diamond is hard, it’s crystal structure can fracture if struck by a hard blow exactly in the right spot. The wrong bump with a grocery cart or a door handle can cause thousands of dollars in damage in an instant.
The bottom line is to get your diamond insured immediately and be sure your insurance covers damage, loss and current Replacement Value.