Insuring a diamond takes a bit of thought, planning, and shopping around. Diamond
insurance isn’t like purchasing car insurance. It is quite different. Depending on the state
that you live in, there are basically three different types of policies that will cover
diamonds, and all insurance policies that cover diamonds are considered Marine
type policies.

The first type of insurance policies for diamonds is an Actual Cash Value policy.
If the diamond is lost or damaged beyond repair, the insurance company will replace the diamond at today’s market value, no
matter how much you paid for the diamond to begin with. This type of insurance policy
for diamonds actually is not that common.

The most common type of insurance for diamonds is Replacement Value insurance. The insurance company will only pay up to a
fixed amount to replace the diamond that was lost or damaged beyond repair. This does not
mean that they will pay that amount – it means that they will pay up to that amount. In most
cases, the diamond can be replaced at a lower cost.

The third type of coverage offered for diamonds is Agreed Value. This is sometimes called ‘Valued At.’ This type of
coverage is very rare. In the event that the diamond is lost or damaged beyond repair,
the insurance company simply pays you the amount that you and the company agreed
upon. This is the best type of insurance to have, but it is rarely offered. If you can’t get
Agreed Value coverage, Actual Cash Value coverage should be your next choice.

Your rates will be determined by the value of the diamond, the type of coverage that you
select, and the area that you live in. If you live in an area with a high crime rate, you can
expect to pay more for your diamond insurance coverage. It is important to
remember that insurance agents are not qualified jewelers, and jewelers are not qualified insurance agents. It is best to get
a certificate for your diamond, and to provide the insurance company with a copy
of that certificate. This leaves the insurance company less room for arguments over the actual value of the diamond.

Don’t rely on separate coverage to cover your diamond. For instance, if you diamond is stolen from your home, it is probably
covered on your home owner’s insurance policy – but the diamond probably won’t always be in your home, and once it leaves
your home, there is no coverage.