Diamond Solitaire Rings
Receiving a diamond ring from your fiancé can be one of the most memorable times of a person’s life. Nothing could be more special than receiving a quality diamond solitaire ring from the New York City Diamond District. At Diamondsolitairerings.org, we strive to provide the consumer with a quality solitaire diamond at bargain prices.
While Deals4Diamonds.com can guarantee the quality upon receipt, we cannot protect the diamond from loss, theft, or damage once it is in the purchaser’s possession. It is imperative to protect your purchase with a comprehensive insurance policy in the event of such occurrence.
When purchasing insurance, the individual must consider several factors. Most consumers opt to list their diamond ring as a personal articles item on your Homeowner’s policy or Renter’s policy. This is probably a more economical solution as typically discounts are offered and the increase is in price is often negligible. With this solution, the diamond ring will be covered if a catastrophic event occurs within the home, but one must also inquire if the ring is covered in the event of loss or damage outside of the home.
The purchaser can choose from three types of diamond ring insurance: agreed value, replacement value, and actual cash value.
Agreed Value
If you choose this option, you and the insurer will establish a predetermined amount to insure the diamond for in the event of loss, theft, or damage. This method does not account for inflation or market values at the time of loss. This policy type is typically more expensive and is typically used for family heirlooms where sentimental value is associated with the ring and cannot be assessed through appraisal.
Replacement Value
This option typically requires an appraisal from an independent source or an appraisal accompanying the diamond. To appropriately evaluate a diamond, market level must be determined. Factors that affect market level are the article’s age, condition, quality, intrinsic content, aesthetic appeal, provenance, current fashion trends, period of manufacturing, etc. Additionally, the four C’s play a crucial role: Carat, Clarity, Cut, and Color.
There are three types of replacement options to be considered in a replacement value policy:
Replacement Cost (NEW)
This is the cost associated with replacing the appraised item with new materials of like kind, quality, and similar utility, at current market prices.
Replacement Cost with a Comparable Item
The is the cost necessary to replace the appraised item with an item that is similar piece of like kind, quality, condition, and similar utility, but not an exact duplicate.
Reproduction Cost (NEW)
Reproduction Cost is the cost of reproducing a duplicate of the appraised item using the same construction techniques, design, and materials.
To determine value for insurance, each of these factors are typically considered in an independent appraisal by a Master Gemologist that appraises the article according to the grading nomenclature of the Gemological Institute of America (GIA).
Actual Cash Value
This type of insurance covers according to the current market rates which cannot be predetermined before loss. With this type of insurance, depreciation is taken into account and is subtracted from the original value each year that the ring are insured. So, if the rates are low at the time of loss you may receive a cash value for the ring that is actually less than the original purchase price. Therefore you may not be able to obtain a ring of equal carat, clarity, cut, and color for the cash redeemed.
Inflation and sentimental value should also be considered when purchasing insurance because you would not want to underestimate the cost of the diamond that you are purchasing.
Insurance rates and prices vary from company to company and state to state, depending upon various risk factors of the areas, such as the amount of theft in the primary area insured, etc. However, as a general rule of thumb, one should expect to spend $10 dollars for every $1000 dollars insured. For example, a diamond solitaire ring appraised at $10,000 will often cost $100 dollars or slightly more per year to insure depending upon the company and area. Discounts are typically available for multiple policy holders.
Questions to ask insurers:
Where is my diamond ring covered? If the loss occurs outside of my primary residence will the diamond be covered?
Are there deductibles associated with damage claims?
Am I limited to certain gemologists when obtaining an appraisal?
Are there any reasons my ring would not be covered for accidental loss, theft, or damage?
Are there any restrictions upon how long I can have the policy before reporting a claims? For example, if the policy is purchased today and accidental loss occurs the next day, will the diamond ring be covered?
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