Diamonds aren’t cheap. Because of this you may want to consider having your diamonds and other precious stones appraised and insured. While the stones themselves will last more than your lifetime, situations can occur that are beyond your control. Just like any insurance, it is better to plan ahead so in case of emergency, you don’t have to scramble around to ensure your possessions are protected and covered. Following points will provide a deep insight into importance of stone appraisal and insurance
Appraisal
If you’ve inherited or been given a piece of jewelry that contains a fine diamond, the first thing you want to do is have it appraised. Certified appraisers will verify the four C’s of the diamond which includes color, cut, clarity, and carats. You will be given a full grading report detailing the proportions and finish of the diamond along with an estimated replacement value for your specific stone.
The purpose of having your diamond appraised isn’t just so you can flaunt its worth; it is more for your peace of mind. These detailed reports you will receive regarding the diamonds you have appraised will come in handy should anything happen that would require you to have them replaced. This is where diamond insurance comes in.
Insurance
Just like your life insurance protects the ones you love from any financial burden, diamond insurance is there to protect your investment or inheritance in the event you are robbed or lose belongings due to an act of god.
Once your diamond has been appraised, you should keep the report in a place of safe keeping away from your home. A safety deposit box is ideal for these situations; that way you know if anything were to happen to your home, it would still be there. In the event your jewelry is lost or stolen or damaged beyond repair, the diamond insurance would give you either actual cash value, replacement value, or agreed value.
The actual cash value insurance would give you back, in cash, the amount the diamond is worth on today’s market rate rather than the actual amount paid for it. Replacement value insurance would give you a pre-determined amount to replace the diamond, which could actually be less than was originally paid. With agreed value insurance, you set a binding amount at the time the insurance is purchased and should anything happen to it you would receive that set amount of money.
It is a fact of life that bad things happen when you least expect it. By taking the initiative and having your fine jewelry pieces appraised at the time of purchase or receipt and then having them fully insured, you can be sure that your assets are protected in the event they are lost, stolen, or damaged. It is a wise investment to make when you consider the total value of your diamonds and other jewelry. It would be a shame to spend $25,000 on a beautiful diamond engagement ring only to have it lost within a year or two during your honeymoon or while she’s washing dishes. By appraising and insuring your diamond, you will be able to replace it without breaking the bank all over again.
