When you buy loose diamonds, just as when you buy diamond jewelry, it’s really important to get them insured. Loose diamonds can be difficult to identify if stolen, so they’re often more vulnerable than jewelry. They’re also easier to lose. But how should you go about finding the right kind of insurance for your loose diamonds?
Insuring loose diamonds can be done in several ways. The most common option is a policy which offers to pay out a set amount of money, established at the point of signing, for each of your loose diamonds. Policies like these are usually cheapest but can leave you vulnerable if there’s any considerable shift in the market value of your loose diamonds. An alternative is a more expensive policy which pays out the established market value of your loose diamonds at the time of loss, enabling you to replace them immediately. But some precious things can’t really be replaced, and loose diamonds are no exception. If you have a sentimental attachment to your loose diamonds – for instance, if you’ve inherited them from a beloved relative – it may be worth your while negotiating a special policy which will reflect that. This is usually the most expensive option of all, but it will give you flexibility and the option of something more closely approaching real compensation.
Even if you’re negotiating you insurance policy, you won’t be able to obtain any cover for your loose diamonds unless you have certificates for them. This is one of the many reasons why, if you agree to buy loose diamonds without certificates, you should get them professionally appraised. You can also reduce the cost of your insurance policy by getting your loose diamonds scanned, enabling them to be identified by computer at a later date.
Insurance for loose diamonds may seem complicated and expensive, but it’s something you can’t afford to be without, so make sure you get it right.