Can You Insure a Lab-Grown Diamond

A lab-grown diamond can – and in fact, should – be insured just as you would a traditional diamond. Your lab-grown diamond engagement ring holds not only sentimental value, but has monetary worth that requires protection in the event that it is lost, stolen, or damaged. Insuring your lab diamond ring will give you peace of mind that you can afford to replace it if need be.

How Insurers View Lab-Grown Diamonds

Insurers provide protection for both lab-grown and mined stones, including in the event of loss, theft, or damage. 

And while you can purchase the same type of coverage for both, you’ll likely discover that insurance premiums for lab-grown diamonds are typically lower because they cost less than traditional diamonds. Expect your premium to range from 1-2% of your stone’s appraised value.

Finally, many gemstone insurance policies will include language that states replacement is subject to “like kind and quality.” This means in the event of a claim, your insurer will replace a lab-grown diamond with another lab-grown diamond, not a mined one.

Documentation Required by Insurers

Insurance companies require documentation about your ring before providing coverage. It’s important that your ring’s value is accurately calculated to provide the right coverage for the investment you’ve made and ensure that should you file a claim, your insurance will cover it fully. 

Documentation an insurer will request includes:

  • Proof of purchase or receipt: This will confirm your ownership and establish the purchase price. 
  • Gemological grading report: A grading report from a recognized lab establishes the diamond's characteristics, including cut, color, clarity, and carat weight.
  • Professional appraisal: Typically, insurers will require this if your ring is a higher-value piece. A professional appraisal will help determine current replacement value based upon market pricing, setting, craftsmanship, and other factors.
  • Photos, serial numbers, inscriptions: Photos provide the insurer with visual evidence of the ring’s condition and appearance at the time the policy is issued. Inscriptions or serial numbers should also be included as they offer an additional method of identification.

Insurance Options

You have two options to insure your lab-grown diamond engagement ring. The one you choose depends upon the ring’s value, how often you wear it, and the level of protection you desire.

Jewelry-Specific Policy

A jewelry-specific policy is a stand-alone policy providing coverage specifically for fine jewelry. Coverage is based on documented value and typically includes protection against loss, theft, and accidental damage. 

Benefits of a jewelry-specific policy include:

  • Broader coverage than homeowner’s/renter’s insurance
  • Oftentimes lower deductibles
  • Coverage for everyday wear
  • Coverage is typically worldwide
  • Subject to “like kind and quality” replacement rather than a cash payout

Homeowner’s or Renter’s Insurance

Insurance for your jewelry on a homeowner’s or renter’s insurance policy (sometimes called a rider or endorsement) adds on to your existing policy and extends coverage to your ring. Some factors to bear in mind if you decide to take this route:

  • Coverage limits are capped at the item’s listed value
  • Deductibles often match the main homeowner’s/renter’s policy
  • There might be coverage exclusions such as accidental loss or damage to the ring outside the home

Choosing the Policy That’s Right for You

It’s important to speak with a licensed insurance professional when deciding which policy is right for you. When you do, consider asking the following questions:

  • Are there coverage limits and exclusions?
  • What are the replacement terms? (For example, cash payout or “like kind and quality”?)
  • What are the deductibles?
  • What are the premiums?
  • What is the claims process?
  • How often should we review coverage?

When you insure your lab-grown diamond, you can feel confident that this valuable investment is well protected.

Next Steps

Acquiring insurance is an important part of the lab-grown diamond ring creation process. Whether you’re just getting started or need more in-depth information, we’ve got answers for all your lab-grown diamond questions, including diamond facts, warranties, and more.