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According to one of the nation’s largest jewelry brokers, JewelSafety, “the majority of jewelry claims filed are comprised of accidental loss and damage.” In addition, contrary to popular belief that diamonds are indestructible, they are still susceptible to damage from fire, and accidents.
Without making things too confusing, diamond insurance can be generalized into three main types: Agreed Value, Actual Cash Value, and Replacement value.
Is the value of what your diamond is worth as agreed by you and your insurance company at the point of signing the policy.
It is a negotiated value between you and the company about the amount of reimbursement you will receive in the event of loss or theft. This amount can be renegotiated with your insurance company as often as you deem necessary.
Takes your diamond’s current market value as the reimbursement value regardless of its initial price of purchase. If your diamond is valued at less, then you will receive less, even though you were
paying premium for more.
The insurance company simply pays an amount of money for a “new” item, which can be used to replace your jewelry. This means that if they can find a good replacement deal, they can pay less than what is stipulated in the policy. Interestingly, Replacement Value is the most popular option for many consumers when it comes to insuring jewelry.
Insuring Your ValuablesIt is up to you to get the best value from the policy you choose.
Most claimants do not always get what they expect from the insurance companies and only realized they were insufficiently covered after filing a claim.
Start by reviewing your homeowners or renters policy because you may already have some coverage for jewelry under the policy. If the current value of your jewelry far exceeds the maximum coverage offered, it may necessitate a separate policy.
Every piece of jewelry purchased from Smart Cut™ diamonds will include a complimentary appraisal for insurance purposes.
It is always advisable to get an appraisal to make sure the value of your jewelry has been accurately assessed. This will also ensure you are paying the correct amount of insurance premium for its replacement value.
1) Will the policy cover accidental loss and theft?
2) Are items lost during travel covered?
3) Do you need to have the piece of jewelry appraised?
4) In a loss, is the item replaced or is there a cash option?
5) Are there any kinds of deductibles?
6) Is there full value coverage on the item?
7) What are the fine-print clauses on jewelry care?
Lastly, there is one final question you should ask yourself: is it really worth it to insure my item(s)? Would it be worth paying monthly premiums or would you be OK to replace the jewelry at your own cost?
