Diamonds have long been prized as a source of beauty and value, but what happens when your diamond jewelry is lost or stolen? Replacing it can be costly and frustrating without a good jewelry insurance plan.
There are several options for protecting the value of your jewelry, including homeowners insurance, separate jewelry insurance, and repair insurance through your jeweler.
Homeowner’s or Renter’s Insurance
The first option for protecting your jewelry is using your current homeowners or renters insurance policy.
Most homeowners insurance policies allow you to purchase additional coverage for your valuables. In order to use this option, you have to submit receipts showing the value of the items you want to cover.
The downside to using your homeowners or renters insurance for protecting your jewelry is that it has a limited amount of coverage.
If you have diamond jewelry that is very expensive or sentimental, this may not be the best option for you.
Special Jewelry Insurance
Another option for insuring your diamond jewelry is purchasing separate jewelry insurance.
Jewelry insurance is different from homeowners or renters insurance in that it usually covers the full value of your items.
In order to use this option, you would usually need to get your jewelry appraised by a gemologist.
There are some benefits to using a jewelry insurance company, including repair of damaged jewelry and replacement of lost items.
Some companies do pay out a smaller amount of insurance because they have you purchase replacement jewelry from one of their bulk suppliers.
A third option for jewelry insurance that usually covers repairs or damage is through your local jeweler. Many jewelers offer additional policies that provide maintenance, cleaning, and repair of your jewelry.
This option is a good idea as the jeweler can locate issues such as loose prongs.
The downside to this policy is that it is only good for repairs and maintenance, so you would want an additional policy in case of loss or theft.
Important Questions to Ask
Before you decide on a jewelry insurance policy, some good questions to ask are:
- Does this policy cover lost and stolen items?
- Does this insurance cover items lost during travel?
- Will I need to have my jewelry appraised?
- Do I have to replace the item or is there a cash option?
- Is there a deductible?
- Does this policy cover the full value of my diamond jewelry?
- Are there any fine-print clauses regarding the care of the jewelry?
Pay Attention to Special Conditions
A consideration when purchasing insurance is also to check if there are any special conditions set for coverage. An example of this is when some insurance companies require annual cleaning and inspections.
Another precaution you may want to take in addition to purchasing jewelry insurance coverage is purchasing a safe to store your documentation regarding the jewelry’s value.
You can also use the safe to hold your diamond jewelry when it is not in use.