Working with insurance companies can become very tricky when it comes to replacement of lost or stolen jewelry. The insurance companies usually require an extra rider clause to your homeowner's policy for any jewelry valued over $300.00. In addition insurance companies require documentation of all jewelry items via current jewelry appraisals. This is only the beginning. If you do not have a Certified Diamond with a proper Diamond Report, the insurance company will see this as an opportunity to attempt to replace your diamond with a lower quality diamond. Remember an Insurance Appraisal which values a non-certified diamond is only someone's opinion of the diamond quality grading and value, leaving much room for interpretation when the issue of diamond quality is being addressed.
This is another very important reason to require a Certified Diamond when you make any important diamond purchase. A diamond that has a Certificate allows no room for misunderstanding on anyone's part when it comes time for replacement because of loss or damage. The insurance company is required to replace all items in "LIKE, KIND, AND VALUE" no excuses no deviations of quality or size regardless of current market prices. Of course you must have current appraisals (at least every year).
Another important area is "coverage or insured amount". All insurance premiums are base on "Replacement Value" covered by the current jewelry appraisal. On the one hand insurance companies love to collect high premiums based on inflated Replacement Values, on the other hand they require any payouts to be fully documented and can choose to press the client to accept a lower payout if their jewelry documentation is not completely in order! An insurance company may elect to cash you out. The payment amount will be for the lowest cost of replacement.
The bottom line is to get your diamond insured immediately and be sure your insurance covers damage, loss and current Replacement Value.
- Certified Loose Diamonds
