Many people purchase diamond ring as a form of investment and we should consider whether an insurance plan is needed. Owning a diamond ring without any kind insurance coverage could cause a nagging thought, because it is just too valuable to be misplaced or lost. This is something that we really need to consider and we should be smart about protecting our diamond ring. When purchasing diamond ring, we could have spent a fair amount of money for such a small object. That’s the reason why an insurance policy may go a long way toward alleviating our concerns.
Insurance policy for diamond ring is often represented as rider to existing homeowner’s or content insurance policy. There are different kinds of insurance for diamond rings. One type of insurance is called actual cash value and it allows us to get replacement of the ring based on the prevailing market rates. However, this coverage is rarely chosen because they can be quite expensive to maintain. Agreed value plan is a more desirable form and in this case, the insurance company and ring owners agree on specific value. So, despite of the current market prices, owners will be compensated at this amount.
Replacement value plan is the most common type of insurance for diamond rings. It is the least expensive, but provides less financial coverage for ring owners. In this case, the insurance company will negotiate for the lowest price. In this case, it is quite possible that we will get a financial compensation at lower value than the actual value of the ring. In this situation, we should also be quite careful about the valuation from the insurance company. If possible we should insist on getting a valuation from the independent appraisals. It is a bad idea to allow the insurer to pay only $3000 after we have a lost a $20,000 diamond ring.
When we are planning to have a trip and we need to bring the ring; it is important to inform that insurance company. In this case, we should make sure that the insurer is willing to cover the financial losses if the ring is stolen, misplaced or lost in a different country. It should be noted that some insurance plan only covers the loss of a ring, if it is lost or stolen inside the house. This could cause a problem, if it happens outside our house. Overall, ring insurance policy can be quite difficult to obtain. In this case, we should keep a guideline handy and with an insurance policy, we should be able to buy some peace of mind.
Diamond ring is a good investment, because its value increases progressively. In some cases, it is better to keep our valuables, including diamond rings in a bank locker. However, many people want to wear the ring for various occasions and as a jewellery piece, it has a functional purpose. After a few years, we should consider the current value of the ring and if we have an agreed value or replacement value plan, we may need to update it according to current prices.