How to Insure and Appraise a Diamond Engagement Ring

A diamond engagement ring is no small investment. These rings can cost anywhere from $5,000 to over $1 million dollars. Since they are typically worn on a daily basis, there is always the chance of something happening to them, from falling off by accident to becoming damaged due to wear and tear. In order to protect your investment, you should have your diamond engagement ring appraised and insured as soon as possible. Here's how.

1. Get your ring appraised. The first step in getting your diamond engagement ring insured is to have it appraised. The best place to get your appraisal is at an independent jeweler. While a gem lab report will give the value of an unmounted diamond, it will not take into account the entire ring and setting and the work that went into crafting it.

2. Look over your existing insurance policies. With most renter's and homeowner's insurance policies there is some coverage for jewelry theft. In a typical policy, the maximum pay out will be $1,000. If this covers the cost of your ring, then you don't have to worry about getting an additional insurance policy to cover the cost of your diamond engagement ring in the case of a robbery or accident.

3. Purchase a Jewelry Insurance Policy. Contact your insurance company and find out how to get an insurance policy that specifically covers your jewelry. A few things to consider when talking to your agent include:

Is there a deductible? You should also ask to see if lowering or raising the deductible will affect the policy cost. Which type of appraisals are needed prior to obtaining insurance. Sometimes insurance companies have strict policies regarding which types of appraisals they will accept for fine jewelry. In what cases will the policy cover the loss of your ring?
Does it cover you both domestically and internationally? In addition, does the policy covers repairs to damaged jewelry?
Ask whether or not you must replace the ring if it is lost or if you can opt for a cash settlement.
Be sure and take photos of your diamond engagement ring and keep them in a safe place. These will most likely be needed in the case of a loss.

4. Take photos. Be sure and take lots of photos of your diamond engagement ring and keep them in a safe place. These can be very useful in the event of a theft or loss.

5. Keep your appraisals current. Remember that the market value fluctuates, and your diamond engagement ring can increase in value over the years. In order to make sure you get what your diamond engagement ring is worth, take it in every few years for a a new appraisal and keep it for your records.

A diamond engagement ring is a sign of undying love and affection and is a very sentimental item. It is also, however, a monetary investment and should be treated as such. Insuring your diamond engagement ring is very important and shouldn't be put off. Get it appraised as soon as possible so you can get it covered by a sound insurance policy.