Can you insure a lab-grown diamond?
Can you insure a lab-grown diamond?
Laboratory-grown diamonds have , especially , for engagement rings as well as for women making purchases for themselves. Their reasons for buying lab-grown diamonds are straightforward: diamonds are than natural or Earth-mined diamonds, and their quality can match that of natural diamonds. As a result, consumers can get a larger lab diamond of the same quality for the same price they would pay for a natural diamond. (You can see how much bigger it is using an .)
explains how insurance works for lab-grown diamonds and what coverage options to consider.
What are lab-grown diamonds?
, sometimes referred to as , are diamonds that are grown in laboratories both in the United States and across the globe. Lab-grown diamonds have , using a technique that mimics the Earth鈥檚 process of heat and pressure on carbon to crystallize a diamond. While the first lab-created diamonds were not of high quality, about 10 years ago, the technology improved to a point where we now have gem-quality lab-grown diamonds readily available to the public.
How are lab-grown diamonds different from an Earth-mined diamond?
A lab-grown diamond is physically, chemically, and optically the same as a mined diamond, with some slight differences. The biggest difference? Natural mined diamonds are between 2 and 3 billion years old. They were formed over a hundred miles below the Earth鈥檚 surface with extreme heat and under immense pressure. They are mined from deposits that were thrust up closer to the Earth鈥檚 surface through volcanic activity over millions of years. In contrast, a lab-created diamond can be made in a laboratory in only a few weeks.
Should I get insurance for lab-grown diamonds?
. Any time you spend your hard-earned money on a luxury piece of jewelry, you should make sure it鈥檚 protected with jewelry insurance. With the average lab-grown diamond ring costing from $2,000 to $4,000 depending on carat size, you have a couple of options.
You can add a rider or 鈥漟loater鈥 to an that will cover the replacement cost of your lab-grown diamond ring, , or bracelet. You need to add a rider at additional cost because most homeowners policies will only cover a limited amount (about $1,000 to $2,000) under personal possessions coverage. Your rider will probably be subject to a deductible as well if you want to keep costs down.
Also, if you make a jewelry claim through a homeowners standard policy or with a rider or floater, it may impact your future premium costs for homeowners insurance. This is because jewelry claims are usually reported to loss-history data services used by insurance companies to assess your risk and set premium costs.
Or, you can choose to get a policy from a provider that specializes in just jewelry insurance. While coverage varies among specialty jewelry insurance providers, you can get a jewelry policy quote online in minutes. Compare coverage costs, deductibles, flexible payment options, and preventive maintenance. Be sure to ask if the jewelry insurance provider reports claims to loss-history data services such as CLUE or A-PLUS, so you don鈥檛 have to worry that a claim might impact your other insurance.
How much does insurance for lab-grown diamonds cost?
On average, jewelry insurance costs between 0.5% and 3% of a to insurance every year, depending on your location. For example, insuring a $5,000 lab-grown diamond would cost about $5.00 to $10.00 per month. It鈥檚 best to obtain an appraisal for your ring or bracelet that specifies it contains lab-grown diamonds when getting it insured.
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