Securing a good insurance policy for your diamond ring is important, whether it is for an engagement ring or any other diamond ring that is valuable to you. After all, this piece of jewelry likely has great sentimental value as well as great financial value. However, there are some things you should know before running out and buying the first policy you can find.
Choosing Diamond Ring Insurance
You may already have coverage for other important items like your car and your home, but if you have valuable jewelry, like a diamond ring, you should also consider diamond ring insurance. Too often when couples are planning a wedding they forget about engagement ring insurance, until there is a close call or until something happens to this valuable possession. Fortunately finding the right jewelry insurance coverage for your needs doesn’t need to be that difficult.
There are a couple of ways to insure a diamond ring. You can add a ring rider or jewelry rider to your home or renter’s policy or you can purchase from a company that specializes in jewelry insurance policies. Even if you have personal property coverage, a rider is usually needed to cover the full value of specific pieces of jewelry like an expensive diamond ring.
Adding a jewelry rider, or floater, to an existing policy can be beneficial in a couple of ways. First you may receive a discount on the diamond ring insurance premium because you have other policies with the same company. It can be easier to keep track of multiple policies with a single company and it makes paying bills easier. The downside to this option is that customer satisfaction and policy details can vary significantly from one company to another.
The other option for diamond or wedding ring insurance is to go with a jewelry insurance company, meaning one that specializes in jewelry insurance like Jeweler’s Mutual or Chubb. These companies have years of experience when it comes to insuring diamond rings or insuring jewelry of any sort. They have good ratings when it comes to customer satisfaction and they offer a variety of policy options including cash value policies. The downside to this option is that it may cost a little more.
Before choosing a diamond ring insurance policy make sure you know the important details of that policy. What is the repair or replacement policy, or is it a cash value policy? These become important questions if something happens and it is better to know the answer before you choose the policy rather than after you file a claim.
Get A Jewelry Appraisal
Before insuring a diamond ring you will need to have an appraisal. A jewelry appraisal is an important part of the insuring process as both you and the company insuring it will want to know the true value of it. You want to find a qualified jewelry appraiser to get the most accurate appraisal possible. You don’t want to overpay for your premiums or under insure a diamond ring.
Getting appraisals periodically is important to make sure you and your insurance company know the current market value of your ring. As markets fluctuate and the value of diamonds and precious metals change so does the value of your jewelry.
Find A Qualified Jewelry Appraiser
The company you choose may have a list of jewelry appraisers they use, but you should also do a little research yourself. Unfortunately this industry isn’t heavily regulated so it is important to look for certain credentials to make sure you use a qualified jewelry appraiser.
You want to find an appraiser who has had formal training and one who is recognized by reputable organizations in their field. Look for someone who has a Graduate Gemologist (GG) degree which indicates they have had formal training, and look for someone who belongs to the American Society of Appraisers (ASA) or the International Society of Appraisers (ISA).
Take the time upfront to choose your diamond ring insurance wisely. You’ll be glad you did if you ever need to use it.