Fine diamonds are universally famous, or at least famous in the West. They can be found, first and foremost, set in the middle of engagement rings, but also in tennis bracelets, in pendants and necklaces, and in earrings. Diamonds are also purchased, often, in the loose form, not yet placed in a setting. These loose diamonds can be stored, but can they always be stored safely? What about the cases of theft and loss when it comes to loose diamonds? Insurance would seem like a smart option when it comes to loose diamonds. But will insurance companies cover loose diamonds?
Insurance companies are more than happy to insure diamond jewelry, but unset stones often produce quite a different response. The number of insurance companies that view loose diamonds as a high risk is high, and the number of insurance companies unwilling to assume the risk is even higher. The risk comes in because loose diamonds are not connected to a piece of metal and so can easily be lost. Still, there will be a handful of insurance companies that insurance loose diamonds.
Why insurance companies won’t insure loose diamonds
That begs the question: why won’t insurance companies insure loose diamonds? You may wonder as I do. The reasons that insurance companies won’t insure loose diamond comes, again, because of the risk they are. The risk comes because loose diamonds are just that, loose. Loose things are bound to roll away such that they can’t be found again. The fact that they are not set in something larger makes them risks for loss. In addition, given their state, loose diamonds are kept rather than being worn. When things are out of sight, as the saying goes, they are often out of mind, and that which we don’t have in mind we can lose because we neglect them mentally and then can’t remember where we put them.
With insurance, whenever something insured is lost and the owner files a claim, the insurance company pays out. With the frequency that these easily misplaceable loose diamonds can be lost, the insurance company likely foresees excessive cost and so avoids loose diamonds. The more loose diamonds the company insures, the more the insurance company will probably have to pay out.
Why insurance companies will insure set diamonds
Loose diamonds are expensive in themselves, but the act of putting them in a setting is also an expensive process. Insurance companies are more eager to insure objects of a higher financial value, and diamonds put in settings fit this bill. Expensive objects, also, are those that people take special care with.
All that said, the very best way to insure loose stones is to have them set. A setting makes it more likely that a diamond won’t be lost, and, let’s be honest, a setting only amplifies the diamond’s beauty. And, as I’ve pointed out, a diamond in a setting is one that can be easily insured. So, first get that diamond set, and then insure it.
To learn more about both buying loose diamonds and about getting loose diamonds set, visit The Diamond Reserve in Denver. They will have answers to your questions and much much more.