Diamonds are valuable, hard, beautiful…and easy to lose and easy to steal. This is why diamond comparison of insurance policies is so important. You should keep your treasures safe. One of the first things you should do after you purchase a loose diamond, or an item of diamond jewelry is to decide on how you want to insure your investment.

Homeowners/Renters 

Homeowners and renters insurance will cover your diamond or diamond jewelry if you are the victim of a robbery or some sort of natural disaster. However, if your diamond is damaged or lost while you are out and about, your diamond will not be covered by a standard plan. Also, if your diamond is stolen or swept away by floods, homeowners/renters insurance will only reimburse you up to a “limit of liability”. “Limit of liability” is the current market value of your diamond at the time it was lost. This limit is determined by the insurance company and usually averages at $1,000-$1,5000. What exactly does this mean, you might ask? This means that a diamond ring you bought for $2,000 in 1995 might now be determined to be worth $1,000 after 15 years of wear and tear. If this ring is stolen, your homeowner’s insurance will pay you back $1,000 minus your deductable, which would typically be around $200. So, if your diamond or diamond ring is worth significantly more than $1,000-$1,5000, you might want to consider another method of insurance.

High Limit of Liability 

Sometimes home/renters insurance allows customers to pay higher premiums each month and raise their limit of liability. Depending on the highest limit, this can be a good, cheap option for those who want to cover diamonds or diamond jewelry items that are valued at more than $1,500, but less than, say $10,000.

Floater Policies 

If you are really clumsy, prone to losing things, or just want to be careful and very safe, the most complete diamond insurance coverage is by what’s called “scheduling” each item through a floater policy. Floater policies cover any type of loss no matter what. If you accidentally drop your engagement ring down the toilet, they’ll cover it. If your dog eats it and it’s never to be found again, they’ll cover that too. They also cover your claim based on the listed value for the item on the policy. This means you usually have to bring your diamond or diamond jewelry to an appraiser who will do a diamonds comparison so that the listed value can be determined. And if your insurance company doesn’t provide floater policies, there are many niche jewelry insurance companies that will be happy to!