Important Things to Know About Diamond Insurance

Whether you're buying it or giving it to someone special, an engagement ring should always have insurance once it's bought.

Usually, the first step to getting a ring insurance is to have the ring appraised. Now, here's the critical part. A lot of people tend to claim that they know how to appraise jewelry. It is for this reason that it is recommended to find someone who is qualified or, better yet, is a Gemologist Graduate or someone with a GG degree. Professional gemologists are most likely to give a better estimate on your jewelry's value.

Once you've had your diamond ring appraised by a qualified gemologist, you're now ready to look for an insurance company to get your diamond ring insurance policy. In this stage, you actually have the option to either buy what they call a special rider on a homeowner's policy or purchase an insurance policy that specializes on diamond rings. For the first option, you would want to get a special rider to take advantage of a special coverage that will ensure settlement or some form of payment for lost or damaged jewelry. So, in this case, if your diamond gets lost or damaged, the insurance company may be able to provide coverage of up to $1500 or even more. Note though that this amount might already cover all the other jewelry in your possession. For the second option, you can enjoy the possible benefit of getting paid through settlement (cash value policy) in case your diamond ring gets lost or damaged. The downside of this option though, diamond ring insurances tend to be costly.

Once you've found the right insurance company, the next step is to send the appraisal of the jewelry. You can either send the details via email, snail mail or fax. Once the insurance company receives the appraisal, they will be able to give a quote for the insured value for your diamond ring. At this point, you can ask them if the insured value they stated would automatically increase over a certain period of time or if another process for appraisal would need to be done in a couple of years or so.

Once you have the diamond ring insured, it is now time to pay for the monthly, quarterly or annual premium. On the average annual premiums are at 1.5%. So, technically, if your insured diamond ring has an appraisal of $20,000, your annual premium would then be $300 or somewhere near that range.

Lastly, just make sure that you understand everything that's stated in the policy's terms.