Do I Need Diamond Ring Insurance
If you have to ask whether or not you need diamond
insurance you probably do. There’s something nagging you in
the back of your mind saying “this thing’s just too darn
valuable to have it stolen or misplaced!” And you’re right.
While you should never look upon your diamond jewelry as an
investment, there’s no harm in being smart about covering
things you’re spending a fair amount of cash on, and diamond
ring insurance can go a long way toward easing your
concerns. There are a few things to consider, however.
Diamond ring insurance is usually found as a rider to most
homeowners or renters insurance policies, at least in the
US. Many insurance companies won’t bother, but most of the
larger ones will. There are basically three types of diamond
ring insurance: Actual Cash Value, Replacement Value, and
Agreed Value. Actual cash value replaces the ring at current
market rates, either higher or lower than you paid for it.
This coverage is rather rare. Another rare form of coverage
but the most desirable, is Agreed Value. This is where you
and the insurance company agree on the value, and that is
the amount you are compensated in the event of a loss. The
most common type, and the policy that most people are sold
is Replacement Value. This is where the insurance company
replaces your ring at the lowest cost they can negotiate.
This is sometimes much less than the amount the ring is
insured for. This is an area to be careful. Always insist on
an independent appraisal, as you don’t want to be paying
premiums for a ring appraised at $15,000, and then have it
replaced for $3000.
Make sure your diamond ring insurance covers you when you
travel, and for most normal occasions. I’ve seen policies
that only covered the ring in the house, causing problems
when it was lost or stolen outside the home. All is all,
diamond ring insurance isn’t difficult to obtain, just keep
these guidelines handy and you’ll be able to buy some piece
of mind!
Keith Thompson is a diamond devotee and owner of
http://www.diamondstoday.info. For more information on diamond insurance
please visit today!
Tags: diamond, diamond ring insurance, diamonds, insurance, rider