Finally you've found a diamond ring of your dream. Long hours in jewelry shops, exhausting search in the Web, consulting with jewelers and friends, making comparison of various cuts, colors and carats, fitting, some other necessary procedures – and the ring is yours! That's great, isn't it? However, there are still some important points to consider. For example, what about diamond ring insurance? A diamond ring is an investment, so make sure you've done your best to protect your rights and to save money.
Diamond ring insurance consists of three types: agreed value, replacement value and actual cash value. Agreed value is a rather rare type of coverage but the most preferable one. The diamond ring insurance company agree on the value which represents the amount you'll receive in case of loss. However, replacement value is more usual. According to this type of diamond ring insurance the company compensate the diamond ring at the lowest cost you agree upon. Very often this amount is considerably less than the price of the ring and the amount it was insured for. So, you should be careful with replacement value diamond ring insurance and require an independent appraisal, otherwise a rare antique diamond ring for $20,000 may be replaced for $4,000.
As for actual cash value, this type of diamond ring insurance will replace the lost ring according to the current market rates which can happen to be lower of higher, so, you don't know beforehand whether this type of insurance will be helpful or not. Yet whatever insurance you choose, be certain it covers you during traveling or other activities outside the house.
Unfortunately, the value of ring, especially if it's your diamond engagement ring or diamond wedding ring, can't be measured only in money. The loss of ring may upset its wearer not only because of its price but for some private reasons. However, try to arrange so that, even if the loss of the ring breaks your heart, it won't empty your pocket. |
