Your insurance should say what they cover. I actually don't think mine covers theft, but I'm not sure. If yours does cover theft they'll reimburse you but I think it's depreciated. The cops are likely to do this, but I'd take a picture of the diamond earrings to local pawn shops and ask them to keep on the look out for them. They're gonna try and fence your stuff and it'll be through pawn shops or craigslist. 90% of the time that's how they're caught.