The man of your dreams proposed to you. And now you are jumping up and down from excitement: holding your head because you can’t believe this is all real. And while this is one of the best moments of your life, it also adds more responsibilities. And I am talking about that huge shiny rock you have on your finger.
And it also may be something else than an engagement ring. Maybe your grandmother bequeathed you her diamond earrings. Or maybe your father gave you an amazing diamond necklace for your birthday. But it does not matter how you got those diamonds. The question is this: should you get insurance for your diamonds?
And the answer is yes. You most definitely should. I mean, have you thought about what is going to happen if you lose your ring? Or what if someone steals it? What about if it gets damaged? So, here are some things you need to know about insurance for your diamonds.
GET IT AS SOON AS POSSIBLE
You would insure your new car prior to driving it off the lot, right? Well, it is the same with diamonds. It is normal that at first, you won’t be thinking about what can happen to your precious and sentimental diamonds. However, remember that the sooner they are insured, the sooner you will be protected. So when you are done bragging about your shiny rock and celebrating it with some Bacardi, start looking for insurance providers.
CHOOSE A COVERAGE PROVIDER
Now, when it comes to insuring your diamonds you basically have two options. Do you have a homeowners’ or renters’ insurance? If yes, then you can purchase an extension. That will cover your engagement ring specifically. But if you don’t have any of those insurances, then you are left with option number two.
You can take out a policy through a company that specializes in jewelry insurance. And in case your insurance provider does not offer the specific coverage your want, independent companies can take a look, too.
UNDERSTANDING THE PRICE OF YOUR DIAMONDS
Moving on, the cost of your diamond’s coverage will vary greatly based on a couple of factors. Those include the value of your ring, where you live, whether or not your policy has a deductible. The factor of where you live is important because that way insurance companies can check the rates of theft in that area.
You should know that policies without deductibles would have higher monthly premiums. And, just as with health and car insurance, it’s a great idea to ask your insurer what types of repairs contribute to your deductible.
If you are thinking about insuring a ring, then you should know that the estimated costs average $1 to $2 for about every $100 your ring is worth. And in theory, you can anticipate a premium of $100 to $200 a year.
KNOW WHAT TO ASK
Now, you made the decision of insuring your diamonds. But that is not all, you need to know what are the important questions to ask your potential policy provider. The reason is that when you get answers to those questions, you will have a better understanding of which provider is best for you and your diamonds. Some of those questions include the following:
- Can I choose who repairs your ring?
- If I have insured for replacement, where can I buy a new ring?
- What happens if I can’t find a suitable replacement?
- How will I need to prove the ring vanished if I make a claim?
- Are there any circumstances that aren’t covered?
- Will I continue to be insured when out of the country?
- Am I covered for damage or just loss/theft?
- Will the policy adjust according to inflation?
YOU SHOULD GET AN APPRAISAL
Can you protect something when you don’t know what it is worth? No, you can’t. But the good news is that a thorough appraisal will include the carat weight, cut, color, and clarity of all the diamonds, the carat weight and shape of any colored stones, the metal type and fineness or karat. It will also include any identifying marks, hallmarks, or stamps.
You should also keep in mind, that most insurance companies will require an appraisal for higher value pieces. On the other hand an invoice or receipt serves for less expensive items.
YOU NEED A DIAMOND CERTIFICATE OR GRADING REPORT
A diamond certificate or a grading report will list all of the measurements your appraiser will need to make the most accurate determination of value. Moreover, this detailed information, that you might think is not necessary, can also help track down your specific diamond if it’s ever stolen. Think about it: if your diamond is lost and you don’t have an appraisal you won’t be able to recover its worth. So, do the right thing.
YOUR APPRAISER SHOULD HAVE THE RIGHT CREDENTIALS
You need to find a reputable appraiser who has great reviews. It would also be preferable if your appraiser has a graduate degree in gemology and is a member of a national appraisal society. And the most important thing is that your appraisal is accurate.
Think about it, you might be thrilled when the sparkler that cost only $2000 appraises for double. However, you could end up losing money in the long run by paying higher monthly premium for your diamonds that appraises for $4000.
NOW GO AND REAPPRAISE
The good news is that your diamond’s value has probably gone up since it was purchased. But it is essential to have them reappraised every two or three years for insurance purposes. Moreover, if you had a good experience with your previous appraiser, consider sticking with them. They probably kept a copy of your original appraisal and can work from that instead of starting from scratch. And that will save you some money.
Now that you know every little thing about insuring your beautiful diamonds get yourself off the coach you are sitting on, hop on your car and get those precious things insured. You won’t regret it.