Fine Jewelry - Insurance Coverage for Fine Jewelry

Most people have at least one piece of expensive jewelry: a wedding ring, a class ring, a precious necklace from a relative. However, not all fine jewelry is adequately insured. How many times have stories been heard of wedding rings going down the sink or lost at the beach. These kinds of things do happen all the time. Without adequate protection, the owner of the jewelry may not receive adequate reimbursement for the item or no reimbursement at all. The most comprehensive form of insurance for jewelry is a Personal Articles Floater.

Is Jewelry Covered By Homeowners Insurance

The standard homeowners policy has only limited coverage for jewelry items. Claim payments for any one jewelry item is limited to $1,000 per piece. Furthermore, the types of coverage for the jewelry is limited as well. For example, there is no coverage for lost items. A broader form of jewelry insurance is written on an insurance policy called the Personal Articles Floater. Sometimes it is possible to add additional limits for jewelry to a homeowners or renters insurance policy for high value items, but still there is a limit to the amount an insurance company will offer and the coverage is still limited. The Personal Articles Floater policy offers much broader coverage to include lost items.

How are Claims Settled for Lost or Damaged Jewelry

In Jewelry insurance, articles are valued when the insurance is written. As such, in the event of a loss, there are no claims problems regarding the value of the piece. As such claims under the Personal Articles Floater policies are handled quickly and without too much hassle. The claims payments will be made at the lesser of the cost to replace or repair the item or the limit established when the policy was written.

How To Apply for Personal Articles Floater Insurance

To obtain insurance for jewelry, it is necessary that an appraisal be done by a certified gemologist. Most jewelry stores have a gemologist on staff who can complete the appraisal for a small fee. Do keep in mind that retail values for jewelry trend greatly from year to year. Even though a piece of jewelry might appraise for $10,000 does not necessarily mean that insurance should be purchased in that amount. If a similar item of like kind and quality can be purchased for $8,000, that might be a better deal in the long run. Insurance for jewelry can get expensive. Insuring it for more than is necessary is just a waste of money.

The best place to get a quote for jewelry insurance is from the current insurance company writing your property insurance, the homeowners or renters policy. Most personal property insurance companies also write jewelry insurance and would most likely be glad to offer a quote for the coverage. If your insurance company does not offer specialty jewelry insurance, a separate policy can be obtained from specialty markets such as Jewelers Mutual Insurance Company.

If you have any questions or simply want to learn more about jewelry insurance, visit The Coverage Geek, where insurance is spoken in plain English.

Article Source:

http://EzineArticles.com/?expert=Laura_Bacho

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Note: This article deals with the pricing of jewelry created using smaller Diamonds, under 0.10-0.15ct each.

Right from a few bucks to few thousands, or even millions; DIAMOND jewelry is always difficult to price, especially for ordinary shoppers.

In this guide, you will learn:

– Factors that determine the price of Diamond jewel.

– Estimating the “right” price of a Diamond jewel, and

– Recognize the over-priced sellers in a jiffy.

FACTORS THAT DETERMINE THE PRICE OF A DIAMOND JEWEL

There is a 99% probability that you are already on your way in doing some online research regarding Diamond 4C’s, Diamond Quality, etc.

Well, lets quickly have a look at the factors affecting the Diamond price:

– Cut :– ‘Ideal’ is most expensive and ‘Fair’ cost’s average.

– Color :– D color (colorless) is costliest as its rare and as the Diamond color drops, so does its cost.

– Clarity :– Needless to say, ‘Flawless’ (FL) Diamonds are the most pricey, and as the clarity gets poor, the price significantly reduces.

– Carat :– The bigger the Diamond, the more $ it seeks!

– Fluorescence :– Not many people take this in account, a Diamond with a strong fluorescence will be priced many bucks less than one with no fluorescence. (because less fluorescence = more glitter)

– Fancy Color :– Diamonds that have a definite fancy color like Blue, Pink, Yellow, etc. will attract a huge price. Note: Yellowish/brown Diamonds do not qualify in this, rather they are quite inexpensive.

– Combination of factors :– A 1 carat, colorless (D) & Flawless clarity Diamond will cost much more than a bigger, say 2 carat poor color (say J) and clarity Diamond.

As you now see, there are few more factors that affect the price of a Diamond, that come into play other than the 4C’s.

ESTIMATING THE ‘RIGHT’ PRICE OF A DIAMOND JEWEL

But even after knowing the above factors very well, how can you know the right price of the Diamond(s) in your jewel?? Keep reading…

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— Ugly Fact: There is no “standardized” pricing for Diamonds! Diamond prices will vary from store to store, whether offline or online.

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How are Diamonds priced then?

Diamonds are priced on a ‘per carat rate’ basis.

For e.g. 100 Diamonds of 0.01ct equals 1 carat Diamonds, same for 10 Diamonds of 0.10ct.

But since there is a huge size difference between them, the per carat price of each of them will vary substantially, meaning the smaller Diamonds might be around Rs. 30000/- per carat while the larger ones may be around Rs. 45000/- per carat! Click to compare Diamond sizes.

So, just see the difference….

– 100 Diamonds of 0.01ct each = 1.0 carat in total = Rs. 30000/- and

– 10 Diamonds of 0.10ct each = 1.0 carat in total = Rs. 45000/-

Does it mean that anyone can sell at any rate??

No, the pricing is generally in a hierarchy, with the quality of the individual Diamonds(4C’s) and the individual size of the Diamonds being directly proportional to the price.

Meaning, a couple of years back, smaller Diamonds generally had the following per carat rate:

– 0.01ct Diamonds of Top quality (D-F color, FL-VVS clarity…)

Per carat rate = Between Rs. 29000 to Rs. 31000

– 0.05 carat Diamonds of ….

Per carat rate = Between Rs. 32000 to Rs. 34000

So with this knowledge, lets find out the correct price of your Diamond jewel!

Lets assume that you have purchased 2 Diamond rings:

RING 1 has:

– 20 Diamonds of 0.02ct each of top quality (E-F colour, VVS clarity)

– 4.5gms 18ct Gold

– Highly skilled labour work (intricate = cumbersome for the craftsman!)

Approximate pricing of this ring:

– 20 Diamonds x 0.02ct each = 0.40carat in total

Assuming a carat rate of Rs. 30000 = 0.40 x 30000 = Rs. 12000/- for the Diamonds.

– 4.5 gms 18ct Gold @ Rs.1200 per gm = 4.5 x 1200 = Rs. 5400/- for the Gold

– Skilled labour for a ring = Approx. Rs. 2500/-

So the addition of all = 12000 + 5400 + 2500 = 19900/-

Therefore, the ring shouldn’t be priced more than Rs. 20000-20500/-

So if a seller is selling the ring for over Rs. 20500, well, you know what to do!

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Approx. labour charges:

1. Diamond Rings with highly skilled work + numerous Diamonds = Approx. Rs. 2400-3000

2. Diamond Earrings with same as above = Approx. Rs. 2700-3500

3. Diamond Pendants with same as above = Approx. Rs. 2000-3000

With the above information, you can easily find out the correct, justified price for any Diamond jewel.

One last note: If you don’t know the “per carat rate”, just ask the vendor for it, if he is a good vendor, he will definitely tell you.

About The Author

Amod Oke is an award winning Gemologist from the Gemological Institute of India, with a Bachelor’s Degree in Business Management.

He is working in the field of Precious Gemstones and Fine Jewelry for over 8 years, and actively strives in his blogs and articles to create consumer awareness regarding buying precious jewelry.

To view Hallmarked Diamond Rings and other hallmarked jewelry, visit his customized Diamond jewelry website —> www.lightofvenus.com

Tags: Jewelry, necklace, fine gold jewelry