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. 

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