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الأربعاء، 22 يونيو 2011

Insuring Your Diamonds


Insuring a diamond takes a bit of thought,



planning, and shopping around. Diamond



insurance isn’t like purchasing car insurance.



It is quite different. Depending on the state



that you live in, there are basically three



different types of policies that will cover



diamonds, and all insurance policies that



cover diamonds are considered Marine



type policies.





The first type of insurance policies for



diamonds is an Actual Cash Value policy.



If the diamond is lost or damaged beyond



repair, the insurance company will replace



the diamond at today’s market value, no



matter how much you paid for the diamond



to begin with. This type of insurance policy



for diamonds actually is not that common.





The most common type of insurance for



diamonds is Replacement Value insurance.



The insurance company will only pay up to a



fixed amount to replace the diamond that was



lost or damaged beyond repair. This does not



mean that they will pay that amount – it means



that they will pay up to that amount. In most



cases, the diamond can be replaced at a



lower cost.





The third type of coverage offered for



diamonds is Agreed Value. This is



sometimes called ‘Valued At.’ This type of



coverage is very rare. In the event that the



diamond is lost or damaged beyond repair,



the insurance company simply pays you the



amount that you and the company agreed



upon. This is the best type of insurance to



have, but it is rarely offered. If you can’t get



Agreed Value coverage, Actual Cash Value



coverage should be your next choice.





Your rates will be determined by the value of



the diamond, the type of coverage that you



select, and the area that you live in. If you live



in an area with a high crime rate, you can



expect to pay more for your diamond



insurance coverage. It is important to



remember that insurance agents are not



qualified jewelers, and jewelers are not



qualified insurance agents. It is best to get



a certificate for your diamond, and to



provide the insurance company with a copy



of that certificate. This leaves the insurance



company less room for arguments over the



actual value of the diamond.





Don’t rely on separate coverage to cover



your diamond. For instance, if you diamond



is stolen from your home, it is probably



covered on your home owner’s insurance



policy – but the diamond probably won’t



always be in your home, and once it leaves your home, there is no coverage.


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