Diamonds are a type of gemstone which is coveted by individuals throughout the world. Whether fixed in a beautiful setting as an engagement ring or comprising a lovely tennis bracelet, diamonds have a look all their own. Although most individuals see this type of gem placed in a setting, there are others who get to see the pure aesthetic value of a diamond alone, without being set in gold, platinum or other types of metal. For those who may own loose diamonds and be unaware of issues surrounding the stone, one may wonder how they can go about keeping this type of gem safe from theft, loss or other casualty. The following will answer the question of whether insurance companies will in fact insure loose unset diamonds and the factors surrounding the acquisition of this type of insurance.
Ability to Insure Loose Unset Diamonds
Many insurance companies will insure jewelry in general however when it comes to loose, unset stones, the number of insurers willing to accept that risk is extremely limited. For those who may be looking for an insurance company to take care of their insurance needs regarding loose diamonds, they may have but one option. That option is the Chubb Insurance Company. Chubb insures specialty items of which loose diamonds is one such type. Therefore, if you are interested in having your loose diamonds protected by an insurance policy, the aforementioned company might be your only option in this regard.
Why Don't Insurance Companies Like to Insure Loose Diamonds?
When looking at the fact that most insurance companies do not insure loose, unset diamonds, many may wonder why not. There are a few reasons for an insurer's reluctance to insure an item of this type. First, loose diamonds which are not bound in any type of setting are more likely to get lost or misplaced. Since they are not worn but simply kept, it is much easier to misplace this small type of gemstone than one which is worn as a necklace, earrings, ring or other type of jewelry item.
Another reason why insurance companies prefer to insure only jewelry which is placed in a setting is for the reason that it is expensive to do so. Again, in keeping with the fact that these small, unset stones are more likely to be lost than their set counterparts, paying out the replacement cost for such a diamond will add up as claims come rolling in. Therefore, the more lost diamonds, the more money which insurance companies must pay out. The best way to prevent paying out on the loss incurred by owners of these unset stones is to not insure loose, unset stones at all.
The Best Way to Protect Your Diamonds
Although there is an insurance company which will insure loose unset diamonds, the premiums which one will pay on a policy of this type will be quite high. The best way a diamond owner can protect their gemstone is to have it set and then insure the piece of jewelry. Otherwise, if one wishes to protect their diamond in its unset state, they will have to acquire a policy through one of the only insurers of this type and pay a high monthly premium to do so.
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» left by Anonymous (1 year 103 days ago.)
Great article, James! But purchasers of loose diamonds do have another option when it comes to insurance. Jewelers Mutual Insurance Company has been insuring jewelry and jewelry businesses since 1913. Rated A+ by AM Best, we are one of the financially strongest insurance firms in the country. We will insure loose stones that are in the process of being set and our rates for loose stones are no different than those for completed jewelry. Rates generally fall between 1-1.5% of the retail replacement value of the item and that's with a $0 deductible. Consumers can save a bit of money choosing a deductible but why have out of pocket expenses when something so sentimentally precious needs repair or worse, goes missing entirely. Respond to this comment
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