When considering how to find good diamond insurance for your precious diamond jewelry, there are a few things you need to know about diamond insurance policies, and what they cover and do not cover. It's a specialized type of insurance, and your insurance agent may not have all the information he or she needs to craft a suitable policy for you, so it's up to you to come armed with all the particulars you're concerned about.
There are basically three types of diamond insurance available, and these are Actual Cash Value, Replacement Value, and Agreed Value. Actual Cash Value means that your diamond will be insured at today's actual market rate for the diamond, irrespective of what you paid for it. Replacement Value means that the insurance company will pay up to a certain amount to replace the diamond. They may actually pay lees than the policy states, as they can often get a better replacement transaction than you can. Agreed Value is simply that; you and the insurance company come to an agreement on the value of the diamond, and that is what they'll pay in the event of a loss. This type is rare, and if you can get it, jump on it! Most times people are steered into Replacement Value, but that should not be your first choice if you have one. Try for Agreed Value, then Actual Cash Value first.
Most diamond insurance polices are written as riders to your homeowners or renters insurance. There is one more major thing to keep in mind, especially as regards Replacement Value insurance. Do not opt for the insurance companies appraiser when evaluating the value of your diamonds. They work for them, and you should know that if they set the value of your diamonds at $ 15,000 and after a loss they find they can replace the diamonds for $ 5000, that's what they'll do. Why that is significant is that all this time you'll have paying premiums based on $ 15,000, not $ 5000. Big difference. Always insist on an independent appraiser.
Finding good diamond insurance is not all that hard, but like anything else when it comes to any type of insurance, you'll want to be armed with the facts so you will not overpay, or find yourself underinsured.