Tuesday 23 July 2013

What You Need To Know About Buying Insurance For Colored Diamond Rings

In a world filled with risks and uncertainty, it is normally considered best to protect ourselves against such perils. One way of doing this is by purchasing insurance covers. An insurance cover usually cushions us against eventualities that may cause financial loss. People tend to buy insurance for items they consider dear and valuable to them. Colored diamond rings are a good example of such revered possessions.

What You Need To Know About Buying Insurance For Colored Diamond Rings

Since diamonds are the world's most expensive stones, they are considered a good investment option. Losing or damaging them is usually an unwelcoming thought. In that connection, insurance companies have come up with policies tailor made for those seeking to insure their valuable diamonds.

Available Policies

There are a number of insurance policies available on offer that can be considered before taking an insurance cover. They include;


The replacement value policy

this is probably the most common type of insurance policy available in the industry. Under this policy, an insurance company only seeks to pay up an amount equivalent to the incurred loss. The main objective of this policy is to merely replace the lost/stolen/damaged colored diamond ring. The policy only ensures that the insured is subrogated.

The agreed value policy

though not very popular, this particular insurance policy is the best. The two parties agree on a certain amount. In the event of loss, the insurance company pays up to the agreed amount.

The actual cash value policy

this is the second best option to the agreed value policy. The policy works in the unfortunate event that your colored diamond ring is damaged beyond repair. Once the insurance company ascertains the fact that the damage is unfixable, they will replace it with another colored diamond ring at today's market price.


How to Buy an Insurance Cover for Your Colored Diamond Ring

Before buying insurance for this precious possession, there are a few things that need to be put into consideration.


Look for a Qualified Appraiser

Having your colored diamond ring appraised by a qualified appraiser before purchasing an insurance cover is usually considered as the right move. This is normally done to ascertain the actual value of the ring and it also helps in determining the amount of premium to be paid. The appraisal act also ensures that the insurer knows exactly the ring's color, clarity, carat and its cut quality. Since the industry is filled with self-claimed appraisers, look for a proven one with a track record.

Choose an Insurance Company

There are basically two ways of dealing with this. The first option is to go for a company that focuses on issuing policies for special rider on a homeowner. The other option is to go for insurance companies that specialize in providing diamond ring insurance. Chubb and Jewelers are a perfect example of such companies.

Pay your premium


After sending your appraisal to the identified insurance company and agreeing on the policy you wish to undertake, it's now time to consider paying up the premiums. Once you have paid your premiums, you can rest assured that if anything happens to your precious diamond ring, the insurance company will compensate you.

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