Maybe you have found THE ONE, or an anniversary is coming up, and you are thinking it’s time to buy your significant other that diamond ring that they have always wanted. When looking at any diamond jewelry, there are 5 main characteristics that go into any diamond: color, cut, clarity, carats and most importantly, cost. Each one of these aspects impacts the value of the diamond and is important information to know to make sure your new jewelry is protected.
Color, as the name suggests, deals with the overall color of the stone, with a clear stone being worth more than a yellow or other-colored stone.
The cut of the diamond can determine the eye appeal and gauges how the shape of the diamond was made.
Clarity is the way diamonds are judged when viewing for imperfections on the stone. Any earth-made element will have imperfections, but the fewer there are the higher the value.
The size of the diamond is measured in carats, much like a home is measured in square feet. The larger the size the higher the valuation.
The last, and often the most important “C,” cost, is what the diamond cost when you purchased it and what you will want to insure the diamond for. An older stone should be appraised periodically to have an updated value.
Reviewing your home policy and insuring any jewelry is the best way to protect your new investment. A receipt or appraisal and a description are all that is needed to endorse your policy. These endorsements are often a very small percentage in cost in comparison to the value. Reviewing your home policy every few years and updating appraisals with your agent are great ways to keep up with the everchanging value of all your insured investments.
Article by James "Matt" Dailey, Manager & Agent at Kinneman Insurance