When most people go shopping for an engagement ring, getting insurance is typically the last thing on their mind. A wedding ring is one of the most precious pieces of jewelry that a family can own. They’re not just going to leave it somewhere and forget about it. In case of a fire, it’ll probably be one of the first things they reach for, and it’s not likely to be stolen while it’s sitting on their finger. For some people, diamond insurance seems like a scam to make more money. Why would they insure a piece of jewelry that rarely–if ever–leaves their line of sight?
It’s easy to assume that a diamond ring is a permanent fixture in one’s life. But the truth is, accidents can happen. More than one spouse has taken off their ring while washing their hands and walked away, only to remember when they got home that they left it on the sink. Rings have been lost during camping trips, bonfires, home improvement projects, and cruises–and once they’re gone, it’s a miracle if they turn up again. Sometimes an accidental hand gesture or flick of the wrist can result in a ring being cracked against the edge of a table. And while it probably won’t happen while the spouse is wearing the ring, theft is entirely possible. Plenty of criminals have broken into houses and stolen diamond rings, sold them to pawn shops, and pocketed the profits.
For these reasons and more, it’s important to get diamond insurance. But how can a buyer get their diamond insured, and what kinds of benefits do they receive?
Why Should a Buyer Get Diamond Insurance?
Diamond insurance protects buyers from the very beginning, even before the gem is set in the base. On rare occasions, diamonds can be chipped, cracked, or damaged during the setting process. When this happens, the buyer can file a claim with the insurance company so they can get a new stone without having to pay an exorbitant amount. Once the diamond is secured in the base, it’s seemingly safe and ready to go–but in fact, the diamond’s journey is just beginning.
Married and engaged people typically wear their rings everywhere: at the mall, at restaurants, at the movie theater, at the beach, at offices, at retail stores. Sometimes they even take their rings camping or hiking with them. The ring accompanies them every day when they go to work, sometimes braving the risks of public transportation. It’s there in the car, when they pick the kids up from school, when they go to soccer practice, and when they visit their family for Thanksgiving. In other words, the ring goes everywhere. And every time it leaves the house, there’s a risk of the ring getting lost somewhere.
Sometimes the wearer leaves the ring on a sink when they’re washing their hands; they come back, and the ring is gone. Other times, they might accidentally drop it down a vent or a storm drain. They could be playing in the ocean and look at their hands, then notice that their ring is missing. Maybe they left it on a cruise; the workers searched the entire boat, but they couldn’t find it. Every single outing is a potential risk for the owner of that ring. And once it’s gone, it’s probably not coming back.
There’s no way to replace a priceless family treasure like an engagement ring. But if the owner has ring insurance, they can at least get the diamond replaced without having to pay for a new one out of pocket.
What Does Diamond Insurance Cover?
Diamond insurance covers just about everything: loss, theft, damage, and accidents. Unlike the jeweler’s warranty, which only covers damage that was caused by inferior craftsmanship, diamond insurance covers damage from both the jeweler and the individual. Most diamond insurance even covers international travel–if the diamond is lost in a foreign country, they’ll still pay for the replacement. Diamond insurance also covers the loss of a diamond in the case of a fire, flood, earthquake, or other natural disaster.
Is There Anything that Diamond Insurance Doesn’t Cover?
Most diamond insurance doesn’t cover the usual wear-and-tear that occurs over years of use (scratches, blemishes, erosion, etc.) Diamond insurance also won’t cover the owner if their diamonds are seized due to a criminal investigation. Insect and animal damage is also usually not protected.
Which is Better: Buying Diamond Insurance, or Adding Jewelry to Homeowner’s Insurance?
Several insurance companies give their customers the option to add jewelry and other sentimental items to their home insurance coverage. Like diamond insurance, homeowner’s insurance covers the cost of the ring in case of loss, disaster, theft, or damage. If the ring is damaged, the insurance company covers the cost of repair; if it’s stolen, the owner gets a pay-out of the full appraised amount. For some owners, adding their jewelry to their existing homeowner’s insurance might seem like a convenient alternative to going through a separate company.
Adding jewelry to homeowner’s insurance has its advantages, but it also has its drawbacks. If the owner makes a claim to their home insurance policy, the entire policy often goes up. Alternatively, if the owner makes a claim through a separate jewelry insurance company, their home insurance won’t be affected. Diamond insurance also tends to cover a greater number of risks and hazards than regular insurance.
How Much Does Diamond Insurance Cost?
Whether the owner chooses to go through their homeowner’s insurance or invest in a diamond insurance company, diamond insurance is usually quite affordable. Some diamonds can be insured for less than $50 a year. The price is typically a small percentage of the diamond’s appraised worth. Most owners will also have to pay a deductible when they make a claim, but it’s still only a fraction of the cost of the jewelry.
How Can an Owner Get an Appraisal?
Diamond insurers will typically require an appraisal so they know how much to pay out if the owner files a claim. Some insurers recommend that the diamond be re-appraised once every year or two. To get an appraisal, the owner can contact their jeweler or search online for a list of qualified appraisers. Once the appraiser is hired, the appraiser will inspect the diamond and evaluate its quality, clarity, color, weight, and any other qualities that might be relevant. To prepare for an appraisal, the owner should thoroughly clean the jewelry and complete any repairs beforehand so the diamond can be rated as highly as possible.
Where Can a Buyer Get Diamond Insurance?
A buyer can purchase diamond insurance either by going through their current homeowner’s insurance company, or by searching online for a reputable diamond insurance company. Interested buyers can get a quote, see how much their insurance might cost, and proceed from there. Most insurance policies can be purchased directly online. If they’re not sure where to begin, their jeweler might be able to recommend a good insurance policy.
List of Companies I Know That Insures Diamonds
What Happens if a Buyer Doesn’t Have Insurance?
Nothing. Diamond insurance isn’t required anywhere in the fifty states, and many owners go their entire lives without buying a single policy. But if the owner loses their ring and doesn’t have insurance to cover it, they’ll either have to go without a ring, or pay for a new one completely out of pocket. For most people, that’s an unexpected cost of thousands of dollars. They’ll either have to take out a large chunk of their savings, or simply save up enough money until they can afford to buy a replacement.
On the other hand, if they invest in diamond insurance, they can have a new ring in a matter of days. They’ll simply file a claim, pay the deductible (if there is one), and either send the ring in for repairs or get a check in the mail. The old ring was irreplaceable, but at least they’ll be able to move on and start making memories with their new ring.
If a buyer isn’t sure if they need diamond insurance, they should ask themselves a few simple questions. Namely: Is this ring important to me? Would I be devastated if I or my spouse lost it? Does it hold a lot of cherished memories? Is it exorbitantly expensive to replace? Ultimately, is it worth paying a couple of dollars a month to have the peace of mind knowing this ring can be replaced? If they answered “yes” to any of these questions, they should consider getting diamond insurance. It’s cheap, it’s easy to sign up for a policy, and gives owners a valuable peace of mind.