Jewellery insurance – Diamond Ring Insurance
Investing in Gold Jewellery and Diamond is a great form of saving. You could have saved for months to buy your precious Jewellery. For those who are newly engaged, Congratulations! It’s an exciting time. You may love the sparkle of the diamond ring on your finger and the glitters of the gold Jewellery around your neck. But hey!, don’t forget to insure them! Loss, damage and theft occur can happen to anyone without notice. You can avoid unwanted financial setback with Jewellery Insurance or Diamond ring insurance. That is why, in today’s topic of “Jewellery insurance – Diamond Ring Insurance“ we will explore the mysteries of Jewellery insurance or Diamond Ring Insurance.
Diamond Ring Insurance, Engagement Ring Insurance Or Jewellery Insurance?
Before we begin, you could have come across names such as Diamond Ring insurance, Engagement ring insurance or Jewellery insurance. Broadly speaking, they all are a similar type of insurance policy that serve almost the same purpose. Obviously, each insurer will add or remove benefits to their individual type of policy, apart from that, there are no major differences. That is why, throughout this article, names such as Diamond Ring Insurance, Engagement Ring Insurance Or Jewellery Insurance will be used inter changeably.
What is Jewellery Insurance – Diamond Ring Insurance?
These are insurance policies designed to protect the owners financial loss in the event the Jewellery is stolen, damaged or (lost). Usually, these policies work in the “principal of indemnity ” basis. What does that mean? Imagine you have a ring which you bought for 10K and fully insured with two policies. Unfortunately, you lost it last month, Now since you have two insurance policies, it does not mean each insurer will pay you 10K each. You cannot collect 20K returns for your 10K worth of loss. Surely, you can make your claim from one or both the insurers at the same time, but the maximum possible claim cannot exceed 10k. Principle of indemnity here implies that you recover what you lost and you cannot make profit from your insurance claims. That is how most Diamond ring insurance , Engagement ring insurance or Jewellery Insurance policy works.
Note: if you are a jewellery business owner, if you are considering to protect your business with insurance, you should consider Jewellers Block Business Insurance coupled with Cyber Insurance. This topic is written for individual’s jewellery protection
Jewellery Engagement ring insurance works just like other Jewellery insurance, but focuses more on engagement coverages. Likewise, if you hear of a Diamond Insurance, it is another Jewellery Insurance that focuses more on Diamonds rather than gold or other precious metals or gem stones.
Typical Jewellery Insurance – Diamond ring Insurance Coverages
Most home insurance do cover Jewellery that is kept in the house. These are usually called as home content insurance. Broadly, this is a general insurance for your home contents. You get paid if your home kept Jewellery was stolen or damaged due to fire or water. These insurance does not pay you if your Jewellery at home goes missing without trace and nor do they make a payout if you lost your Jewellery when you are outside your house or on travels. Furthermore, home content insurance will not give you a full cover for your Jewellery, at most partial. Imagine, your $100,000 diamond ring was stolen from your home. You have evidence of forced entry into your house, you made a police report of the crime and now you go to your insurer. Even though you have taken home content insurance with $100,000 coverage, the insurer will not pay you the entire 100K. Instead he will pay a proportion of the coverage which he believes as a fair value. So, if you want a full or comprehensive coverage for your Jewellery or gold, you need to turn your attention towards a comprehensive Diamond ring insurance or a Jewellery Insurance.
Why Diamond ring Insurance Or Jewellery Insurance?
Dedicated Diamond ring insurance or Jewellery insurance differs from home content insurance. These dedicated policy focuses on the Jewellery or the diamond that is being insured. A good insurance policy of such type is usually under written by company such as CHUBB. Usually these under writers work closely with bodies like The Gemological Institute of America (GIA) and the American Gem Society (AGS) to provide you a fair value for your diamond or jewellery and yes, based on your needs and budget, these companies do offer many insurance plans.
Let’s get serious
Now that you have got the understanding of Diamond ring Insurance or Jewellery insurance policy, let’s get into the details. We shall now explore what it covers and what it will not. We will examine how these policies are priced and what you should look out for when you purchase your diamond ring insurance or Jewellery insurance in our part two of this article.