Insuring a Diamond Ring – Is My Jewelry Covered Under My Homeowner’s Or Renter’s Policy?

Insuring a Diamond Ring - Is My Jewelry Covered Under My Homeowner's Or Renter's Policy?

Diamonds are valuable assets that should have adequate insurance coverage against loss or theft. What makes a diamond a valuable asset? I’ll give you three reasons: Firstly, diamonds are valuable because of rarity; Secondly, because of scarcity; and thirdly, because they’re mounted into rings, earrings, bracelets, anniversary rings, pendants, and necklaces to make beautiful jewelry that people like to wear.As beautiful and popular as diamond jewelry is, though, it is worn in the public only by an incredibly small percentage of the populace. The reason for “the rarity of wearing diamonds in the public” is twofold. The high cost and the fear of loss or theft. The high cost of a quality diamond is such that not everyone can afford to buy a diamond or to buy insurance for it. And those who own diamonds, but don’t have insurance, are reluctant to openly wear them out in the public for fear of loss or theft.To further consider what makes diamonds such valuable assets that need insurance protection, lets turn our attention to the literal scarcity of diamonds. Did you know that to mine a one or two carat diamond requires the removal of more than two hundred tons of ore; And that out of every one million diamonds mined, only one is a quality one carat diamond; And that out of every five million mined, only one is a quality two carat diamond.Moreover, because mined diamonds are translucent, rough and dull, they have to be cut, polished, and mounted by skilled jewelers before they are ready to sell. The high cost of mining diamonds and getting them ready for retail is passed on to consumers, making diamond jewelry quite an expensive and valuable asset, and placing their purchase slightly outside the reach of those who can neither afford to purchase insurance for a diamond, and thus further attributes to why wearing diamond jewelry in the public is a rarity.There is also a rarity of diamonds in the literal sense because of their scarcity. How pronounced is this scarcity are diamonds? Consider that more than 80% of mined diamonds are not suitable for jewelry and can only be used for industrial use, such as diamond drill bits. The scarcity and high demand factor for quality diamond jewelry that people love to wear is what makes diamonds such valuable assets.Consider that just the opposite is true of stimulated and cheaper grade diamonds. The demand is high, but the supply is plentiful, which is why they have such little value. There’s no need to purchase insurance for these, but if you plan to purchase quality diamond jewelry, you should get insurance. If you already have diamond jewelry – but don’t have it insurance – you need to get it ASAP. Here’s why: The consumer demand for quality diamonds is expected to continue rising. This means that the value of diamonds is going to continue to climb higher and higher, provided that the scarcity (supply) level remains constant. It’s important that you protect your assets against loss or theft with insurance.With the value of diamonds increasing, it’s important that you have it appraised to determine its present value. Quality diamonds purchased years ago are likely to be worth considerably more than they were when purchased. If yours has increased in value, it may not have enough insurance coverage to cover its replacement in the event of loss or theft, so contact your insurance agency.It’s crucially important that you attend to this matter at once. In to-days’ presently depressed economic cycle, the threat of loss through theft is at an all time high. Home owners every year are losing many thousands of dollars in jewelry theft. The jewelry owners who do not have insurance or who have inadequate coverage suffer the greatest asset loss, so it behooves you to get sufficient insurance coverage to protect your diamond jewelry assets.