Loose Diamond Insurance
Your diamonds have sentimental and monetary value, and they're probably one of your most-prized possessions. If you’re considering insuring your loose diamonds, you’re definitely making the right decision.
What is Jewelry Insurance?
Like other forms of insurance, it protects your most-prized possessions from loss, theft, disappearance, or damage. In the case of jewelry insurance, it covers your jewelry if it’s lost, stolen or damaged. Apart from being important to you personally, you spent effort and time to find the perfect diamond and setting, and likely invested a good amount of money into this important purchase. As a result, you want to protect your loose diamonds and expensive jewelry pieces.
You might wonder what situations jewelry insurance covers. It’s important to check with the policy as you research, but most policies cover the following:
• Theft: Thieves are on the lookout for jewelry, and sadly, it’s a commonly stolen item. It’s crushing when anything is stolen, but a stolen sentimental wedding set is devastating. Damage. Dropping your ring and damaging it or hitting it on the corner of the table–these are only some of the scenarios that can damage your jewelry.
• Loss: Losing your ring could happen. Perhaps you left your ring at a hotel on vacation or lost it gardening and can’t find it anywhere.
• Disappearance. As wild as this sounds, sometimes jewelry does disappear and you have no idea what happened to it.
Most jewelry insurance covers the following types:
• Engagement and wedding rings
• Heirloom jewelry
• Loose stones while being set
One of the biggest advantages is affordable peace of mind. Jewelry insurance typically costs approximately 1-2% of the total value of your loose diamonds. For example, if your diamond is worth $5,000, then your insurance could be $50 per year to insure. Many homeowners and renter insurance policies do not cover replacement of jewelry or diamonds. And if it is covered, it might only cover a portion of the cost depending on what happened to the diamond or jewelry. For example, loss or damage might not be covered.
How to Choose Insurance?
You might wonder how to compare jewelry policies. As you research insurance for your loose diamonds and expensive jewelry, consider the following:
• Coverage: Read the policy’s fine print to see which contingencies are covered. You want a policy that includes loss, theft, and damage if you accidentally drop it. Ask which circumstances are not covered.
• Replacement: You’ll want to ask questions about the replacement. For example:
• Is there a deductible for replacement?
• What is the process for replacing your loose diamond or ring?
• Who needs to find the replacement (owner or insurance company)?
• Are repairs or partial losses covered? Are loose stones or gemstone covered?
• Can you get a check to cover replacement or repairs?
• Assessment of Value: Ask how the value is determined and whether you need to get your jewelry or diamond appraised.
• Documentation Requirements: Keep records of your jewelry appraisals, gemstone certification details, receipts, and photos.
It’s a good idea to get your diamonds appraised every two to three years so that you do have a current record of your loose diamond or jewelry value. Compare coverage options as you research different plans to determine which fits your needs. Once you decide on insurance, keep a file of your insurance-related documents in case you need to reference them later. Any decisions with your insurance agent should be in writing so that you can have records
Where to Find Insurance
With Clarity has partnered with Lavalier to provide an insurance option to make it easy for customers to protect their investment. It covers any unfortunate events, such as loss, theft, and damage to loose diamonds and your precious jewelry.
Finally, as you think about whether or not to obtain jewelry insurance, ask yourself the following questions:
• Would you be crushed if your jewelry or diamonds were damaged, stolen, or lost?
• Would you be able to afford to replace or repair your jewelry or diamond out of pocket?
• Would jewelry insurance give you peace of mind?
If you have questions, a With Clarity representative can help. Many people spend time researching to find the perfect diamond and jewelry setting, but often overlook jewelry insurance. Thankfully, Clarity makes it easy to include so your investment is protected.
Yes, all types of jewelry can be insured including loose diamonds while they are being set. This protects you from issues that could happen during setting.
Yes, loose diamonds are valuable, and their value is based on the quality of that diamond (4Cs: color, carat, cut, and clarity). Diamonds are a rare and expensive investment, and they have sentimental value that is often priceless.
If you have jewelry insurance, then a lost diamond should be covered. Policies vary, so you’ll have to look at the wording to see if a lost diamond is covered. In many homeowner’s and renter’s policies, lost diamonds aren’t covered.
Yes, jewelry is often one of the most valuable items that you own and jewelry insurance is affordable–it usually costs approximately 1-2% of the total value of your loose diamonds. Other forms of insurance (e.g., renters and homeowners) might not cover the full cost of your jewelry replacement and could have contingencies. You’ll have to determine what works best for you.