If you have diamonds you will probably want them to be insured. You don't want to find yourself in a situation where you have lost or damaged your diamond and cant get another one. Although a new diamond may not hold the same sentimental value as the original, it is still a good idea to have them insured.
When you purchase your diamond you may be offered a warranty at the jewelry store. You will want to see what this warranty covers exactly and how much it costs. Some warranties are offered at pretty reasonable prices, but you need be careful of what they cover. Some may require you to bring your diamonds in every so often to get them looked at, which is probably a good idea anyway. After your warranty is up on the ring you can usually purchase an even longer warranty at the jeweler.
Another smart way to go is to talk to insurance people directly. These people will know what the best type of coverage is. You may want to talk to more than one insurance person to see what different coverages are available to you and how much they will cost.
The first and most common type of coverage you can get is replacement value insurance. With this type of insurance you will get the diamond replace for what it is valued at now, not when you bought it. There is usually a limit to how much the insurance company will pay. The insurance company can usually replace the diamond for less than what you paid for it.
The next type of insurance is agreed value insurance. With this type of insurance you will get a check for an agreed upon amount, once you and the insurance company have agreed on how much the diamond is worth. This type of insurance is not very common.
The last type of insurance is actual cash value insurance. This is the best type of
insurance to have on your diamonds. This type of insurance will replace your diamond no matter what the cost. With this type of insurance it doesn't matter how much you actually paid for the diamond, it will be replaced at whatever it costs at the time of the loss.
Different insurance companies offer different types of insurance so make sure you look around and get the insurance you need and want for your diamonds. If your homeowners insurance covers your diamond you need to find out how good this coverage is as well. If you lose your ring somewhere other than your home will your homeowners insurance still cover it?
Are you sure your diamonds are even covered under your homeowner's policy? Some policies need to have amendments added to cover certain valuables such as diamonds. Whatever you do don't just assume that your diamonds are covered, and don't wait until something happens to them to find out. Do a little research and make sure you are covered with the proper insurance that you need.
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