Lab-grown diamonds are gaining popularity as an ethical and sustainable alternative to natural diamonds. Allied Market Research expects the worldwide lab-grown diamond market to reach $27.6 billion by 2023, increasing by 15.2% from 2017. Lab-grown diamonds, like genuine diamonds, are expensive and may need insurance. In this article, we’ll explore the world of lab-grown diamonds and answer the question: Can you insure lab-grown diamonds?
Can you insure lab-grown diamonds?
Yes, lab-grown diamonds can be insured, just like mined diamonds. By choosing a lab-grown diamond, you can save money not only on the diamond itself but also on the insurance policy’s annual premium due to the insurable piece’s lower overall cost. Lab-grown diamonds generally cost less to insure than earth-grown diamonds as they are less valuable, and it is recommended to insure your valuable and sentimental jewelry pieces in case of loss or theft.
Diamond jewelry insurance typically covers all types of diamonds, including lab-grown and mined diamonds, and usually also covers other precious stones like rubies and sapphires. However, the coverage may vary depending on the insurer. Additionally, while some advocates for mined diamonds claim that lab versions are hard to get coverage for, the application process, the likelihood of acceptance, policy terms, and proportional costs for ensuring lab-grown diamonds are identical to those for earth-grown diamonds.
What does lab-grown diamond insurance cover?
It’s crucial to protect yourself from theft, damage, and loss. Some insurance policies cover the diamond, while others cover its replacement cost. Thus, reading the policy and understanding its coverage is crucial.
Insuring lab-grown diamonds requires several considerations. First, have a gemologist certify and appraise the diamond. This will help show the diamond’s value in a claim. Second, save the diamond purchase receipt and gemological reports. This will make verifying the diamond’s worth and origin in a claim easier.
Finally, know the insurance policy’s limits. Many policies limit how much they will pay for a lab-grown diamond and require it to be insured for an agreed value. Understanding these constraints and ensuring proper theft, damage, and loss protection is crucial.
Overall, lab-grown diamonds have different insurance considerations than natural diamonds. Understand the insurance policy, get the diamond verified and appraised, and retain all the paperwork. This protects you from theft, damage, and loss.
What are the requirements for insuring lab-grown diamonds?
Insuring a grown diamond has some requirements. First, your grown diamond must be certified to prove its quality. Certification should detail the stone’s provenance, carat weight, color, and clarity.
Provide proof of purchase from a reputable gemstone retailer. This will confirm the diamond’s grown status. The store may request a lab report.
Choose an insurance provider that knows and understands grown diamonds. Laboratory-grown diamond insurance providers with customized coverage are the best.
Finally, your policy must cover all risks associated with your grown diamond. Coverage includes theft, loss, damage, and stone defects.
These methods will protect your growing diamond when insuring it. With proper coverage, your stone is safe.
What to look for in a lab-grown diamond insurance policy?
You must know what to search for to get proper lab-grown diamond insurance. Lab-grown diamond insurance coverage considerations:
Premiums of lab-grown diamonds insurance:
Your diamond’s insured value determines your insurance premium. Jewelry insurance premiums are 1% to 2% of the insured amount, whereas lab-grown diamond premiums are 1% to 3% of the evaluated value.
Coverage Premiums of lab-grown diamonds insurance:
Make sure your insurance covers theft, loss, and mysterious disappearance.
Deductible:
Discover your insurance deductible. Higher deductibles cut premiums but increase out-of-pocket costs.
Appraisals for lab-grown diamond insurance: :
Get periodic assessment reports of your lab-grown diamond.
Claim process:
Find a policy with an easy claims process. If lost or stolen, the insurer should replace your diamond with an identical one.
Insurer reputation:
Select an AM Best-rated insurer. This will reassure you that your diamond is safe and your claim will be handled promptly and professionally.
Terms and conditions
Read your insurance policy’s terms. Be aware of any exceptions or limits before signing up.
3 Best insurance companies for lab-grown diamond insurance?
Here are three insurance companies that offer lab-grown diamond insurance:
BriteCo Jewelry Insurance:
BriteCo is a lab-grown diamond insurance firm. For a $5,000 ring, their insurance costs 0.5% to 1.5% of its appraised worth, or $5 a month. In the event of loss, theft, damage, or inexplicable disappearance, their insurance covers the total value of your jewelry. BriteCo offers a 30-second online personalized estimate to guarantee your lab-grown diamond.
Jewelers Mutual:
Jewelers Mutual, a famous jewelry insurer, covers lab-grown diamonds. Their insurance covers jewelry loss, theft, damage, and mysterious disappearance. They cover jewelry at 1% of its appraised value. Jewelers Mutual offers worldwide travel protection and identity theft restoration.
Lavalier:
Another jewelry insurer, Lavalier, covers lab-grown diamonds. Their insurance covers loss, theft, damage, and mysterious disappearance of your jewelry at 1% of the appraised value. Lavalier offers worldwide travel protection and diamond repair or replacement.
