Should I insure my diamond engagement ring?

Once you have bought a diamond engagement ring, it is important to protect your purchase, and the best way to do that is by getting diamond insurance for your engagement ring.


If anything were to happen to your engagement ring without diamond insurance, handling the situation would be quite complicated, not to mention expensive. To make sure that you never end up in that unfortunate state of circumstances, I suggest that you insure your diamond engagement ring. After the diamond has been appraised, your diamond engagement ring can be included in your general insurance policy. However, in certain situations, you may want to consider acquiring a diamond insurance policy specifically for the engagement ring.


A standard homeowner's insurance policy covers valuables, like your diamond engagement ring. With this type of diamond insurance your engagement ring will be safe from any kind of harm or theft that could take place in the home. However, your engagement ring will not be protected from any harm or theft that could take place outside of the home.


Another option for diamond insurance is to take out a replacement policy, suited specifically to your diamond engagement ring. This means that if anything should happen to your engagement ring, it will be replaced with essentially the same diamond ring in terms of its size, ring setting and metal. Nonetheless, it is important to know that if the value of your engagement ring decreases, the diamond insurance policy is not going to make up or split the difference.


With actual value diamond insurance, the policy covers the present market value of the diamond engagement ring lessened only by the value lost as a result of common everyday damage. Actual value insurance is usually the most affordable policy and the type of insurance most often used for diamond jewelry.


On the other side of the diamond insurance spectrum is value set insurance, the highest priced and the least often used policy. With this type of diamond insurance, the customer can decide on the value of the diamond, and even place a value above that of the appraisal itself. Needless to say, there are many clauses in the diamond insurance policy that keep the insurer safe from any form of insurance fraud. Nonetheless, you can include aspects of the diamond engagement ring other than the diamond's size, ring setting and metal, such as sentimental value.


Prior to making the ultimate decision on what kind of diamond insurance you would like to have, make sure to ask what kind of proof you will need to file a claim. Also inquire whether there are any deductibles, and whether the policy includes a cash reimbursement or if they will replace the diamond engagement ring. Find out exactly what the insurance policy includes and where you are covered (worldwide?). If your diamond engagement ring is a family heirloom, make sure that the diamond insurance policy you choose covers such irreplaceable jewelry in a satisfactory manner.

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