Can you insure a lab-grown diamond?

3 min read

Can you insure a lab-grown diamond

It’s not uncommon for engagement ring shoppers to inquire about the possibility of insuring their fine jewelry. It’s a valid question that doesn’t get discussed enough. Generally, fine jewelry, especially diamond engagement rings, are the third largest purchase people make! A home, car, and fine jewelry are some of the most expensive transactions that one makes. There’s no right or wrong way to go about it, but with a little due diligence, you would be surprised to learn why you should consider insuring your fine jewelry featuring diamonds and gemstones.

So why should you consider insuring your fine jewelry? Well, unpredictable things happen. It’s easy to disregard the possibility or unlikeliness of losing your engagement ring, but it does happen. Just like any other insurance plan or policy, careful consideration must be made in order to protect yourself from adverse situations.

It’s important to consider what scenarios are covered in the event of a claim. Don’t confuse an insurance policy with a warranty. An easy way to think about it would be to think of it similarly to car insurance vs. a car manufacturer's warranty.

Let’s discuss what a good jewelry specific insurance policy covers. For this example, we’ll be referring to Soha Diamond Co.’s preferred jewelry insurance provider calledJewelers Mutual. The following coverage is included:

  • Loss
  • Theft
  • Damage
  • Mysterious Disappearance
  • Worldwide Travel

For additional information, clickhere to learn what’s covered. To review Jewelers Mutual FAQs, clickhere.

In full transparency, there are alternatives to jewelry specific insurance policies. It’s important to consider that every insurance policy, whether jewelry specific, renters insurance, or homeowners insurance has their own terms and conditions outlining coverage and cost. Make sure to read thoroughly and inquire specifically about fine jewelry and decide if that’s right for you. The jewelry industry norm would be to generally base the insurance policy value on an appraisal of the specific piece of jewelry. According to Jewelers Mutual, “Standard homeowners policies often provide limited jewelry protection, frequently excluding jewelry damage and loss.”

So, can a lab-grown diamond be insured? Yes! Lab-grown diamonds exhibit the same chemical, physical, and optical properties as a diamond, because they are a diamond!  You may also be wondering if lab-grown diamond engagement rings can be appraised. Yes! Just like a mined diamond, laboratory grown diamonds can be insured. In fact, by choosing a lab-grown diamond, you’ll not only save money on the diamond itself, but you’ll also save money on the annual premium of the insurance policy due to the lower overall cost of the insurable piece.

Wonder what it costs to cover a lab-grown diamond engagement ring? Here’s a quick snapshot of what you can expect in terms of a Jewelers Mutual quote, based on the values below and their corresponding annual premiums, and deductibles as of Fall 2019.

Lab-Grown Diamond Engagement Ring
Jewelry Insurance Quote

Value

Annual Premium

Deductible

$5,000

$50

$0.00

$10,000

$100

$0.00

$15,000

$150

$0.00

$20,000

$250

$0.00

Fall 2019
*Estimates may vary and are subject to change. 
Clickhere for a Jewelers Mutual Quote
Use Jeweler Code A02374

Most people spend the same or more annually to insure and protect their smartphones! As you can see, the annual premium is a fraction of the value of the jewelry piece. It’s by no means an unreasonable premium in order to give you and your loved ones peace of mind.