Does Lab-Grown Diamond Jewelry Need Insurance?

You’ve just bought a stunning lab-grown diamond ring, and it sparkles just as beautifully as any mined diamond. But here’s the question that might be nagging at you: should you get insurance for it?

The short answer is yes, and let me explain why.

Lab-Grown Diamonds Are Real Diamonds

To start with, lab-created diamonds are definitely not to be considered fake. They are not represented by cubic zirconia or moissanite either. These are real diamonds that consist of the same chemical compounds as well as have the same crystal arrangement and physical attributes of diamonds mined. The only distinction is the origin, which is a lab instead of earth.

What impact does this have on insurances? It translates to your lab diamond jewelry being of real worth and requiring real protection.

The Reality of Loss and Damage

It is advisable to consider how much you wear your engagement ring or diamond earrings. Certainly, every day? There will be many chances for something to go wrong.

Jewelry can be lost in all sorts of ways. It comes off your finger while you are washing hands in a restaurant. It gets pulled out from your bag at the gym. Someone breaks into your home. Your stone gets damaged when you accidentally hit your hand against a door.

These situations are not uncommon at all and they occur daily even though some diamonds are not from the mine and some are not from the lab.

Lab-Grown Doesn’t Mean Cheap

It is a common mistake to think that since lab-extracted diamonds come at a lower price than the natural ones, they do not need to be insured. The reasoning is completely wrong.

Of course, you might have bought your lab-created diamond for 40-60% less than the price of a similar mined one. But it does not imply that it was inexpensive. The price range of a good lab-crafted diamond engagement ring can still be $2,000 to $10,000 or even more depending on the size and the kind of setting.

Would you be okay losing that money? Probably not.

What Insurance Actually Covers

Jewelry insurance usually covers many conditions: theft, loss, and accidental damage. In addition to these, some policies will also cover mysterious disappearance, meaning that you will not have to show exactly what happened to your precious jewelry.

When it comes to lab-grown diamond jewelry, the insurers of good standing will provide the replacement cost of the item of similar quality to your original one. This is very important, because although you might be indifferent as to whether the replacement is lab-grown or mined, getting back what you lost is your primary concern.

The Cost Is Surprisingly Low

Now for the good part: jewelry insurance is not that expensive. On annual basis, the majority of people spend about $1 to $2 for every $100 of coverage. If we take, for instance, a lab-grown diamond ring worth $5,000, the premium would be somewhere around $50 to $100 per annum.

That’s less than $10 a month for peace of mind. When you put it that way, it seems like a no-brainer.

How to Get Your Lab-Grown Jewelry Insured

Getting insurance for lab-grown diamond jewelry is straightforward. You have a few options:

Add it to your homeowners or renters insurance. This is often the easiest route, though your coverage might be limited, and you may have a high deductible.

Get a standalone jewelry insurance policy. Companies like Jewelers Mutual or specialized jewelry insurers offer policies specifically designed for valuable pieces. These often provide better coverage with no deductible.

Check if your jeweler offers insurance. Some retailers include insurance or make it easy to set up coverage when you purchase.

Whatever route you choose, you’ll need documentation. Get an appraisal from a certified appraiser and keep your receipt. Make sure the appraisal specifically notes that your diamond is lab-grown and includes details about the stone’s characteristics.

The Bottom Line

Your lab-grown diamond jewelry is a big investment, and it also carries the sentimental value and would be difficult to replace without financial assistance. This is precisely what working with insurance is all about.

Do not allow the “lab-grown” tag to mislead you into thinking that your jewelry needs less protection. No matter if your diamond took billions of years to grow underground or only a few weeks in the lab, it is still a diamond and it is still worth the insurance.

The chance of losing it is the same. It is still a pain losing a beloved piece. The only difference that exists is that, with insurance, you can actually take action when a disaster occurs.

Thus, the answer is yes; your lab-grown diamond jewelry definitely requires insurance. It is a small price for something that lets you have the luxury of wearing your gorgeous jewelry every day without any stress.