When insuring your diamond you have to think, plan and shop around for a great deal. Diamond insurance is not similar to buying a car insurance policy. It is entirely different. There are three different types of policies that cover diamonds depending on the state that you live in. All the insurance policies that cover diamonds are actually similar in all states, though.

The Actual Cash Value policy is the first type of insurance policy for diamonds. The insurance company will replace the diamond at today’s market value if the diamond is lost or damaged beyond repair, irrespective of how much money you paid for the diamond. This type of insurance policy for diamonds is very rare.

The Replacement Value insurance is the common insurance policy for diamonds. The insurance company will only pay a certain specified amount to replace the diamond that was damaged or lost beyond repair. This implies that they will be willing to pay up to that amount. In a majority of the cases, the diamond can be replaced at a lower cost.

Agreed Value is the third type of insurance coverage. This is otherwise called ‘Valued At.’ This is also a rare type of coverage. The insurance company will simply pay the amount agreed by you and your company if your diamond is lost or damaged beyond repair. Though this type of coverage is rarely offered, it is the best type of insurance to have. If you fail to get Agreed Value coverage, Actual Cash Value coverage should be the next choice.

The price for diamond insurance will depend on the actual value of the diamond, the area you reside in and the type of coverage that you select. You must be willing to pay more for coverage plans if you live in a place with a high crime rate. Another fact to take note of is that the jewelers are not qualified insurance agents and insurance agents are not qualified jewelers. It is better to receive a certification for your diamond and to offer a copy of that certificate to the insurance company. This will leave them less room for arguments over the precise value of the diamond.

You must also not trust separate coverage to cover your diamond. If, for example, your diamond is stolen from your home, it is possibly covered on your home owner’s insurance policy. The diamond will not be at home always, though, and there will be no coverage once it leaves your home.