When considering how to find good diamond insurance for your
precious diamond jewelry, there are a few things you need to
know about diamond insurance policies, and what they cover
and don't cover. It's a specialized type of insurance, and
your insurance agent may not have all the information he or
she needs to craft a suitable policy for you, so it's up to
you to come armed with all the particulars you're concerned
about.

There are basically three types of diamond insurance
available, and these are Actual Cash Value, Replacement
Value, and Agreed Value. Actual Cash Value means that your
diamond will be insured at today's actual market rate for
the diamond, irrespective of what you paid for it.
Replacement Value means that the insurance company will pay
up to a certain amount to replace the diamond. They may
actually pay lees than the policy states, as they can often
get a better replacement deal than you can. Agreed Value is
simply that; you and the insurance company come to an
agreement on the value of the diamond, and that is what
they'll pay in the event of a loss. This type is rare, and
if you can get it, jump on it! Most times people are steered
into Replacement Value, but that shouldn't be your first
choice if you have one. Try for Agreed Value, then Actual
Cash Value first.

Most diamond insurance polices are written as riders to your
homeowners or renters insurance. There is one more major
thing to keep in mind, especially as regards Replacement
Value insurance. Don't opt for the insurance companies
appraiser when assessing the value of your diamonds. They
work for them, and you should know that if they set the
value of your diamonds at $15,000 and after a loss they find
they can replace the diamonds for $5000, that's what they'll
do. Why that is significant is that all this time you'll
have been paying premiums based on $15,000, not $5000. Big
difference. Always insist on an independent appraiser.

Finding good diamond insurance isn't all that hard, but like
anything else when it comes to any type of insurance, you'll
want to be armed with the facts so you won't overpay, or
find yourself underinsured.