diamond

Insuring Your Diamonds

Insuring a diamond takes a bit of thought,
planning, and shopping around. Diamond
insurance isn’t like purchasing car insurance.
It is quite different. Depending on the state
that you live in, there are basically three
different types of policies that will cover
diamonds, and all insurance policies that
cover diamonds are considered Marine
type policies.

The first type of insurance policies for
diamonds is an Actual Cash Value policy.
If the diamond is lost or damaged beyond
repair, the insurance company will replace
the diamond at today’s market value, no
matter how much you paid for the diamond
to begin with. This type of insurance policy
for diamonds actually is not that common.

The most common type of insurance for
diamonds is Replacement Value insurance.
The insurance company will only pay up to a
fixed amount to replace the diamond that was
lost or damaged beyond repair. This does not
mean that they will pay that amount – it means
 that they will pay up to that amount. In most
cases, the diamond can be replaced at a
lower cost.

The third type of coverage offered for
diamonds is Agreed Value. This is
sometimes called ‘Valued At.’ This type of
coverage is very rare. In the event that the
diamond is lost or damaged beyond repair,
 the insurance company simply pays you the
amount that you and the company agreed
upon. This is the best type of insurance to
have, but it is rarely offered. If you can’t get
Agreed Value coverage, Actual Cash Value
coverage should be your next choice.

Your rates will be determined by the value of
the diamond, the type of coverage that you
select, and the area that you live in. If you live
in an area with a high crime rate, you can
expect to pay more for your diamond
insurance coverage. It is important to
remember that insurance agents are not
qualified jewelers, and jewelers are not
qualified insurance agents. It is best to get
a certificate for your diamond, and to
provide the insurance company with a copy
of that certificate. This leaves the insurance
company less room for arguments over the
actual value of the diamond.

Don’t rely on separate coverage to cover
your diamond. For instance, if you diamond
is stolen from your home, it is probably
covered on your home owner’s insurance
policy – but the diamond probably won’t
always be in your home, and once it leaves
your home, there is no coverage.


What Are Dirty Diamonds?

A dirty diamond is one of two things: a rough
diamond, or a diamond that hasn’t been
cleaned in a while. Rough diamonds are
uncut and unpolished – hence, they are dirty.
But that type of dirty diamond will soon be
cut and polished and sitting in a beautiful
jewel box in a display case. Then someone
will purchase it, and before long, it will
become a dirty diamond once again.

Diamonds become dirty. When you wash
your hands with a diamond ring on, soap
scum clings to it. When you put on hand
lotion, it gets grease on it. Shower with your
diamond earrings or necklace, and again,
you get soap scum. In one short day, your
brand new diamond could be dirty!



Purchase an ultrasonic jewelry cleaner the
same day that you purchase your diamond
jewelry, and use it every single day, without
fail. The clarity of the diamond changes
when the diamond is dirty – it loses its
sparkle. By taking one minute each day to
clean your diamond jewelry, you can avoid
this, and your diamonds will never be dirty!