Insurance is a necessary protection for your assets. Most people insure their houses, apartments and condos, and their cars. Most people neglect to insure their jewelry, thinking that it is covered under their homeowner’s policy. While a homeowner’s policy does give you some limited insurance, the limits may not be enough to cover all your jewelry.
An expensive diamond may not be adequately covered under your homeowner’s policy. Most people do not read or understand the limits of coverage of their homeowner’s policies, and therefore are under insured in the event of the theft or loss of a diamond.
As an example, your homeowner’s policy may have a limit of $2000 for jewelry theft (which may not cover accidental loss), with a $500 deductible. That means the insurance company’s limit of liability is $1500. If your diamond ring costs $5000, the insurance company will only pay you $1500.
Diamond Inspector highly recommends that you insure your jewelry with what is known as a rider, an attachment, or a personal articles policy that is attached to your homeowner’s policy. This type of coverage will add extra protection for your jewelry. It covers theft and loss, while the homeowner’s policy usually only covers theft. The minimal amount of extra premium per year is offset by the peace of mind that your diamond is covered for full value in the event of theft or loss.
One insurance company offers a policy just for your diamond ring and jewelry, without being attached to your homeowner’s policy. The premium price for the coverage is less than most other insurance companies. The company works closely with most retail jewelers and will help you in the event of a replacement.