Diamonds are one of the precious and costly things on earth. It will cost you a good fortune to own one because of the huge price possess. And just because of that, losing your diamond can be a devastating experience. But now, this tragedy can be avoided by insuring your diamonds. With insurance coverage, you can ensure that you will get your money back in case of damage, loss or theft of your diamond.
What is diamond insurance?
The diamond insurance works like any other insurance. Whether you buy loose diamonds or diamond jewelry, it is better to have them insured so that you will not lose the money you have invested in them even if you lose your diamonds.
How the price is determined?
The amount you will have to pay for insuring your diamonds will be determined based on different factors including the theft rate in your area, the value of your diamonds, etc. Usually, it will be 1-2% of your stones’ total price. For example, if the diamonds cost $6000, then you will have to pay almost $60 annually.
If you are moving to another area, this amount may change. For example, if the theft rate is more in that area, you might have to pay slightly higher when compared to your previous premium. Therefore, make sure that you are covered wherever you go, otherwise, you will not be entitled to recover money if you lose your diamond.
Questions to ask your insurance provider
Before selecting an insurance provider for getting coverage for your diamonds, it is important to ask them a few questions that are listed below:
- Ask your agent what will be covered with the insurance. Ask them if they provide coverage for theft, damage or loss of your stones. If you are buying loose diamonds wholesale, then make sure that you get coverage for all of your stones. Also, find out what types of services go towards your deductibles.
- Enquire about the procedures for getting covered even if you move to another locality.
- Find out where you can get your diamond replaced or repaired. This will help you to ensure that you have access to proper replacements. Note the coverage limit of your policy as well.
- Ask if there are any circumstances that are not covered. Ask all the possibilities like theft, damage or loss, etc. Make sure that you will be covered in all these situations.