| Having your diamond insured is something you | | | | that it does not take into consideration |
| should consider when you are thinking about | | | | whatsoever the amount originally paid by the |
| safeguards around your diamond. When you buy | | | | customer, but rather what it is worth in today's |
| an expensive car, for example, you wouldn't think | | | | terms. |
| twice about insuring it, so why should a diamond | | | | With all things considered, many believe that ACV |
| be any different? Insuring your diamond piece of | | | | policy has not fulfilled its full potential in terms of |
| jewelry guarantees that it remains safe in terms | | | | popularity when it comes to insuring diamonds. But |
| of theft, loss or other misfortunes that may | | | | the most ideal coverage of all is certainly the |
| occur. Insurance policies available today offer | | | | Agreed Value policy. This coverage is based on a |
| three basic kind of insurance which are Actual | | | | monetary agreement reached between both |
| Cash Value, Replacement Value and Agreed Value. | | | | sides (the insurance company and the client |
| However, before deciding which insurance | | | | himself) in terms of the diamond's value. The |
| coverage is most suitable for your needs, it is | | | | insurance company is then completely liable to |
| extremely important to familiarize yourself with | | | | provide the full and exact figure agreed upon with |
| these different policies and what they have to | | | | the policy holder. Therefore, every policy is |
| offer. | | | | individual in its own right, and most importantly the |
| The most common insurance policy used today is | | | | fact that the value is already known in advance |
| called Replacement Value Coverage. Although it is | | | | means that there is no room for surprises in the |
| the most popular, that does not mean that it is | | | | future, if indeed an unfortunate event may occur. |
| the best choice for you. As its name suggests, | | | | In reality, most insurance companies won't even |
| this particular policy is actually based on | | | | offer this type of coverage to begin with seeing |
| proclaiming a fixed replacement monetary value, | | | | as it is so ideal and non-profitable from their point |
| ahead of time, that would be used in case of | | | | of view. However, even in the event that an |
| diamond misplacement. Nonetheless, the insurance | | | | Agreed Value policy is offered, the policy holder |
| company is not held liable for paying the entire | | | | will understandably need to pay a higher premium |
| figure stated in their policy. Instead, they could | | | | rate in exchange for it. |
| turn to the preferred diamond jeweler of their | | | | The three basic policy types offered for |
| choice, who could provide them with a | | | | coverage of diamond jewelry are all very |
| replacement item at a much lower cost than the | | | | different from one another. Most will agree that |
| fixed replacement value stated in the coverage. | | | | the recommended insurance coverage to go with |
| Therefore it is extremely important to individually | | | | is undoubtedly the Agreed Value policy. However, |
| turn to a third party appraiser who could confirm | | | | in case such optimal insurance could not be |
| that the replacement item given to you is indeed | | | | obtained, then the Actual Cash Value insurance |
| on par in terms of quality and value when | | | | should be the next policy of choice. Although |
| compared to your original misplaced diamond | | | | Replacement Value Coverage is the most popular, |
| jewelry. | | | | it is often considered the least desirable policy to |
| In sharp contrast to Replacement Value | | | | have. |
| Coverage, which is based on providing a fixed | | | | Whichever diamond insurance policy is chosen, all |
| monetary value, Actual Cash Value (often | | | | three will also take into consideration not only the |
| abbreviated as ACV) works entirely different. | | | | monetary value assigned to your diamond, but |
| This certain policy states that in the event of | | | | also the area in which reside in. If you live in a |
| misplacing diamond jewelry or alternatively in the | | | | rundown neighborhood or one that suffers from a |
| event that it was damaged beyond repair, the | | | | high crime rate, you could expect to pay a much |
| insurance company will provide the actual current | | | | higher premium for your diamond insurance, as |
| evaluated price of your diamond. The way this | | | | with any other type of insurance. However, |
| value is calculated varies from one insurance | | | | having your diamond jewelry is definitely an |
| company to the next, but they all rely on the | | | | important measure you should consider taking to |
| current diamond market exchange rates. The | | | | protect your investment. |
| disadvantage about this particular policy is the fact | | | | |