Jewellery Insurance Tips
5 Tips for Insuring Your Diamond Jewellery
Purchasing loose diamonds and diamond jewellery can be a solid financial investment as well as a lovely way to express your affection to a loved one. These luxurious objects typically appreciate in financial and sentimental value over time. As a result, diamond jewellery and loose stones should be adequately insured in order to protect against loss, theft or other catastrophic events that could destroy or damage their value.
Here are five helpful jewellery insurance tips from the diamond experts at Twinkle Diamonds:
1. Contents Insurance
Many Australian insurance companies include jewellery coverage in their regular home contents policies. However, the amount covered may be much less than the actual value of your jewellery, so it’s important to discuss with your insurance provider the precise amount of your coverage. Most insurers will add a rider to the policy to cover the added value of the jewellery if necessary. In most cases, however, you will be covered only for the replacement value as determined by the insurer. Ironing out these details beforehand is the best way to avoid financial losses after a covered event. Twinkle Diamonds recommends incorporating jewellery insurance into your existing contents policy; this is typically the safest and least expensive way to add this coverage for these luxurious objects of jewellery art.
2. Independent Valuations
Most insurance companies will require an independent valuation of the loose diamonds or diamond jewellery in order to provide full payment in the event of a loss. Even companies that don’t require these valuations will typically require proof of the jewellery’s worth in the form of a receipt for purchase or a full description of the piece with carat weights and other pertinent information.
As an added value, Twinkle Diamonds provides you with such documentation. The document you receive with your purchase is an independent, third party valuation from an Independent State Registered Valuer. It is usually best to keep these records in a safe place separate from the location of the diamonds and jewellery they describe.
3. Photographic Evidence
A picture may be worth a thousand dollars or more when filing a claim with your insurance company. Keeping a photograph of the piece with the other documentation of its worth can go a long way toward convincing the insurance company to honour your claim.
4. Best Practices for Protecting Diamonds Against Loss
Beautiful and valuable, diamonds and diamond jewellery are also portable and easy to transport. This makes them attractive targets for thieves. Most experts recommend storing valuable diamond jewellery in a safe when it is not being worn. This simple step can deter thieves and even serve as protection for diamonds in the event of a fire. Some banks also offer safe deposit slips or boxes for especially valuable pieces, but these arrangements can be costly and inconvenient. In most cases, a secure fireproof safe is the most effective protection for your diamonds.
5. Dealing with the insurance company
It’s a good idea to touch base with your insurer from time to time to make certain you have enough coverage for your current jewellery collection. You may pay a little extra for your contents insurance, but the added financial protection is well worth that small cost. These occasional insurance check-ups can provide additional support for any future claim you make as well, so be sure to provide your insurance company with the most up-to-date information on your jewellery and loose diamond collection.