How To Insure Diamonds

Unlike car insurance, getting diamond insurance is quite different. Depending on the state that you live in, there are basically three different types of policies that will cover diamonds and are considered Marine type policies.

First type of diamond insurance is an Actual Cash Value policy. Insurance company will replace today's market value of the diamond if lost or beyond repair irregardless of how much you have paid before. This type of insurance policy for diamonds actually is not that common. Replacement Value insurance is the most common diamond insurance. When the diamond is lost or damaged, insurance company will pay a fixed sum to replace the diamond. In most cases, the diamond can be replaced at a lower cost. Agreed Value or sometimes known as 'Valued At' is the 3rd type of insurance converage and is very rare. Should the diamond be lost or damaged beyond repair, the insurance company will pay the amount that you and the company agreed upon. This will be the ideal type of insurance but it is rarely offered. Rates is determined by the value of the diamond, the type of coverage and the area that you live in. Area with a high crime rate, you can expect to pay more for your diamond insurance coverage.