When you think about insurance, typically you think about health, life, home and auto insurance. Diamond engagement ring insurance does not necessarily pop into mind, but it should. This type of insurance is both a life and health insurance policy for your diamond engagement ring wrapped all into one.
A diamond engagement ring is a big investment. A smart investment, wanting to protect your investment seems only natural. It is pretty hard to lose a car or a boat and people insure those things all the time. It is really easy, no matter how careful you are to damage or lose a diamond engagement ring. Having diamond engagement ring insurance will definitely provide some peace of mind and alleviate some stress, in the event that something happens to the ring.
Choosing a policy is just like choosing any other insurance policy. There are a couple of considerations that will help you to make an educated decision:
1. How much of a deductible do you want to pay? How much of a deductible can you afford to pay? If the answer is not too much to either of these questions than you should be looking at a policy that is written for replacement costs. A policy that is written for replacement costs will pay out to purchase you a brand new ring of the same size and setting regardless of the cost. The payments for the policy will be a bit higher than for some of the other policies, but there will be zero out of pocket expense if the ring is lost or stolen.
2. What can I afford to pay for a policy? One of the most common policies is an actual value policy, the outlay for the policy will be less, but if something should happen to the ring, than only the actual value of the ring can be recouped. That means if you owned the ring for three years, than using a formula, the insurance company will deduct three years worth of wear and tear on the ring and only pay out what the ring is worth.
3. Here is the biggest question to ask yourself: Can I afford right now to go out and replace this ring if something should happen to it? If you answer no, or if you answer yes but really would not want to drop that kind of money again, than get your ring insured.
Finding diamond engagement ring insurance can be done through the diamond dealer that sold you the ring. If that is not possible than call your insurance broker and see what they have to offer in way of insurance. The most important thing is that you get it insured. It will save you money and heartache down the road if something should happen.