Natural creations like diamonds stagger the imagination with their appeal. Diamonds are prized as a source of beauty, an asset that makes one feel fabulous, and the chances are you are rocking at least one piece of flickering diamond jewellery. But, is your little beauty insured? Or do you need insurance for it at all? If yes, then what are the aspects that need to be looked upon? Well, keep your worries aside because we will tell you everything about diamond insurance that will help you in making an informed decision while planning for asset protection.
First thing first! What happens when you don’t have it covered?
Well, you will be saving an annual fee of keeping your insurance. But, ask yourself the question: “what will happen if your diamond is stolen or lost?” Well, replacing a lost item can be frustrating with huge replacement cost. In the event of damage, you will be paying the maintenance cost. Simply put, if you choose to go uninsured, you’ll be on the hook if you lose your diamond in theft or if it’s damaged.
But, my jewellery has come with a lifetime warranty?
Indeed it is true that warranties cover the damage and you need to send it back for a repair. However, this is a common misconception that it covers all the damage. The warranties cover only issues with the workmanship; for instance, a bend in the prong will be offered a free repair. But, you will not get it repaired if the damage is caused due to your negligence.
So, what is the solution? What happens when you insure a diamond with specific coverage?
Once you have your diamond covered, you will be paying an annual fee of about 50-100$. Howbeit, you will not have a dent in your pocket. Means you will not be paying from your hard-earned money to make the replacement or maintenance happen in the events of loss or damage. Even if the damage is caused due to negligence, the insurance will cover up all.
Which insurance is suitable for your diamonds?
Unlike other insurance policies, diamond insurance can be categorised into 3 types: actual value insurance, agreed value, and replacement value insurance.
Actual value insurance will give you the current market value of the diamond as reimbursement.
The agreed value will give you the value what you and your insurance company have agreed upon during the time of signing the policy.
And, the replacement value insurance is the most popular one in which the insurance company simply pays the amount of/or a new item that can be used to replace the jewellery.
However, apart from these, you should check the risks specific to jewellery that your insurance company covers. Some companies offer complete protection over losses, theft, and damages; whereas, others may offer only limited protection. So, you must check the policy details, and make sure you know what you are signing.
With that, we hope that you have understood the need for insurance and types of insurance available in the market. We would recommend you make the right decision of purchasing the jewellery specific insurance that will cost only 1-2% of your total value of the diamonds. We would also recommend you purchase diamonds from a trusted diamond distributor in India i.e. KGK Group so that you get the best returns. Also, in the case of loss or damage, you will get the best coverage due to high grade and quality of our diamonds.