Chubb quote - too expensive??

[Gonzodogg]

Well now that I have the ring - I need insurance.
From all the threads here I decided that Chubb is the way to go b/c of their cash replacement policy (for any reason).

I just spoke to someone here in DC and I was quoted $261 per year. Does that sound a little high to anyone?

The ring cost about 13.5K but was appraised at 20K and she told me they needed to use the appraised value even though it will not cost me 20K to replace it. (It could be nice to get a check for an extra 6.5K to "ease the pain" if anything should ever happen to this ring but am I paying too much?)

I would probably pay $500 a year to know that Lia will always have the fantastic ring that I want for her but I just want to make sure I am not getting way over charged.

Thanks in advance

Mike

 

[jaz464]

Places that do cash outs are usually higher in price. I went through State Farm though, which does cash outs (at least my agent will) and the prices were quite resonable. I think I am paying about what you were quoted but I am insuring my ring for $27,000.

When I called Chubb, I found them to be expensive.

 

[Mara]

no it doesnt sound overly expensive for chubb, but chubb is more expensive in general...

when i had chubb it was 10k insurance for 200 a year in SF Bayarea...

depends on where you live too as to how much you pay.

there are other cash out insurance companies, i think jewelers mutual is one of them? i heard that the others are cheaper.

 

[aphisiglovessae]

Hmmm... I don't think that's far off. My ring is insured for over 11K and my premium was a little over 200 dollars a year ($229 I think).

ETA: I have Chubb coverage. Personally, I would've rather had your premium. Looks like my area/state is higher.

 

[solange]

If I recall correctly, we are paying about $225 for $37,000 worth of insurance for my ring as a rider to our homeowners policy. I may be slightly off but it was around that price.

Although Liberty Mutual does not have the immediate cash out policy that Chubb has ,our agent assured me that, since I had provided such specific information and they would find my stone difficult to replace, they probably would just cash out. Also, if they did try to replace it and I was not satisfied with the replacement offered, they would pay out.

I also asked what would happen if the stone broke. I was told that if it was a minor chip that just had to be polished off, they would pay for the repair. However, if there was a decrease in size, I would be "made whole" by either a replacement stone or, more likely a cash out.

We live in Manhattan where rates are high but if you have homeowners insurance, it may pay to look inot adding your jewelry to that.

 

[RockDoc]

Clarifying cash outs on replacement policies.


Yes, it is true that replacement type policies will offer a cash out. HOWEVER IT IS IMPORTANT TO KNOW THE FOLLOWING.

Most of the polices that are replacement type very distinctly say in the policy that the cash out amount will be at the price quoted to them to replace the item, with SIMILAR LIKE KIND QUALITY but LIMITED to the amount that THEIR replacement company quotes. Additionallly the replacement type insurance will never pay more than the amount insured for EVEN IF THE COST IN THE FUTURE IS HIGHER THAN THE AMOUNT INSURED FOR.

ADVICE: READ THE POLICY CAREFULLY.... IF IN DOUBT CALL THE AGENT OR CLAIMS DEPT of the insurance company and question their method of claim settlement.

Chubb cashes out for the amount insured which can be the internet price, the price at your local mall jeweler or wherever YOU select, plus if in the future the cost increases, they cover up to 50% additional.


Rockdoc

 

[Ianmac]

I can tell you the average for Michigan is 1.5%
I am purchasing insurance for a 6500.00 ring
and its going to be around $100.00 a year.
Im pretty impressed, but then again, I dont have a 20,000 dollar rock!

 

[Small]

I don''t find that to be overly high. I''m going to be insuring with Chubb and they quoted me around $160-200 for 8k-10k depending on what the appraisal comes in at. With my current ring I insure with State Farm, I pay $69/year. But it''s definitely not a cash out policy, and I''m way overinsured for what their replacement value is. That''s why when my year is up I''ll be switching that ring to Chubb as well. I''d rather pay more and know I''m getting coverage that allows me to choose my quality and get EXACTLY what I want from where I want to get it from.

 

[Mara]

Oh and Mike that is insane that they are making you use the super inflated appraised value...

The value that you should use would be what you can realistically pay for replacement.

Chubb also should take into account inflation AS IT GOES, not all up front.

I would seriously not insure that ring for $20k if you can replace it for closer to what you paid, aka $14k or $15k.

When I had Chubb they told me I could choose whatever value I wanted for replacement, aka I could take what I paid OR appraisal. I asked my appraiser to give me a non-inflated realistic appraisal value and then I insured it for that (aka $11k instead of $10k or whatever).

 

[solange]

Date: 3/13/2006 1:35:38 PM
Author: RockDoc
Clarifying cash outs on replacement policies.


Yes, it is true that replacement type policies will offer a cash out. HOWEVER IT IS IMPORTANT TO KNOW THE FOLLOWING.

Most of the polices that are replacement type very distinctly say in the policy that the cash out amount will be at the price quoted to them to replace the item, with SIMILAR LIKE KIND QUALITY but LIMITED to the amount that THEIR replacement company quotes. Additionallly the replacement type insurance will never pay more than the amount insured for EVEN IF THE COST IN THE FUTURE IS HIGHER THAN THE AMOUNT INSURED FOR.

ADVICE: READ THE POLICY CAREFULLY.... IF IN DOUBT CALL THE AGENT OR CLAIMS DEPT of the insurance company and question their method of claim settlement.

Chubb cashes out for the amount insured which can be the internet price, the price at your local mall jeweler or wherever YOU select, plus if in the future the cost increases, they cover up to 50% additional.


Rockdoc

Initially I insured the ring for $31.000. Our Liberty Mutual agent called and said that, based on the size and description of the ring, they could not replace it for that amount. Their underwriter came up with the amount of $37,000. I had them make note that this was their suggestion of an amount and I put this in writing.
We have other jewelry insured with them and if I used Chubb, the insuance cost would be prohibitive.

I am sure you get what you pay for with Chubb. I''ve never had a claim with Liberty Mutual although they have handled our insurance for many years. I hope I never have to find out but, since they rejected the $31,000 amount as undervalued, I hope that, if a loss occurs, they will settle it to my satisfaction.

 

[Julian]

That sounds right -- it also depends on the state in which you live. I am insured with Chubb and sometimes it's hard to think that if I didn't have to pay them so much, I could have a new sparkly each year!

They are very expensive, but the peace of mind is worth it. Still, it costs more than my yearly car insurance! But then again, the diamond costs more than my new 530i. Can you believe we walk around with that on our fingers? Sometimes it's a reality check. Sheesh.

There are starving kids out there! I drive by people all the time who panhandle and just want food to eat. I feel so guilty and crappy when I think I could help them get a start with what I pay on jewelry insurance. To think... it doesn't go toward anything. Argh. Anyone else get pangs when they think of this?

 

[dani13]

I have Chubb, and IMO, the extra $$$ is worth it...I strictly wanted a cash out policy, and Chubb is the cream of the crop, so to speak, when it comes to jewelry insurance. We pay about $350 p/y for $17,000+ of coverage, and live in NY metro area. The # you were quoted sounds about right, it depends on where you live. But I dont recall having to insure the ring for the full appraisal value, my FI and I just picked a solid number in between what he paid and the appraisal value, and insured the ring for that. This way, if anything should happen to my diamond, I would at least get the $$$ we paid and then some...

That is the only thing I found odd about your story...you shouldnt be forced to pay a premium based on the appraisal value...the appraisal is usually quite a bit more inflated, not the realistic cost to replace the diamond...

 

[tiger007g]

Gonzodog - Do you live in DC or outside the District in No. VA / MD? The surrounding metro area has significantly higher rates than in the District.

I was quoted $1 per $100 value here in the District for a Chubb stand-alone policy, so yours seems a little higher than my quote. Which Chubb agent are you working with?

I don''t recall whether I had the option to insure for less than the appraised amount.

Perhaps you can get another appraisal that is more in line with the price you paid?

 

[RockDoc]

Hi Solange

I hope so too.

I''ve had a claim with Liberty Mutual. But it wasn''t for jewelry.

It was the car rental company''s extra cost rental insurance, which I did buy. They did pay the cliam, but what the rental agency didn''t tell me is that the gross amount was limited for injury only up to $ 15,000. I had coverage with State Farm, and on that claim they absolutely were horrid to get them to pay the amount I was covered for.

They did pay for the car which was totaled, but the injury was a lot more than $ 15,000. but at least they did pay it without a lot delay or "excuses".

( got hit in the rear by a drunk going 110 mph while driving the rental car. )

So.... hope that helps with your decision in there is ever a claim on your pet rock.

Rockdoc

 

[f0rbidden]

I can say that the claim I had with my auto insurance through liberty mutual was handled amazingly well - they even called back a couple days later to make sure i was ok, which was nice.

that having been said - at least you got a quote from Chubb. I''m still waiting to hear back, 5 days later.

 

[jasontb]

My $0.02:

Unless loosing the ring is going to put you in a financial strangle-hold, you are *throwing away* a *lot* of money on insurance. I don''t believe in insurance.

Not exactly what you asked in your question, but I though I''d share my opinion anyway.

 

[elmo]

I have to agree with what Mara is saying - doesn''t make sense to me to insure for more than your cost, especially since an inflation guard is built into the policy. My understanding is that up to some value higher than this, the sales receipt and lab report is all Chubb needs to document cost and to obtain coverage for the purchase amount for Chubb, although I''ve also heard of some Chubb agents requiring an appraisal.

 

[Gonzodogg]

Date: 3/13/2006 2:51:12 PM
Author: tiger007g

Gonzodog - Do you live in DC or outside the District in No. VA / MD? The surrounding metro area has significantly higher rates than in the District.

I was quoted $1 per $100 value here in the District for a Chubb stand-alone policy, so yours seems a little higher than my quote. Which Chubb agent are you working with?

I don''t recall whether I had the option to insure for less than the appraised amount.

Perhaps you can get another appraisal that is more in line with the price you paid?

We are in Arlington. I heard her on the phone when she was writing it up say that it was $1.30 per hundred of value. 20,100 value -> 201 X 1.3 = $261
I have been dealing with someone at Flather & Perkins - the two other places I called said that they would only attach jewelry to homeowners or renters insurance.
I am going to talk to them again about the value/ coverage issue.

 

[Gonzodogg]

Date: 3/13/2006 3:14:10 PM
Author: jasontb
My $0.02:

Unless loosing the ring is going to put you in a financial strangle-hold, you are *throwing away* a *lot* of money on insurance. I don''t believe in insurance.

Not exactly what you asked in your question, but I though I''d share my opinion anyway.

Jason
I have sen your posts before about you not thinking insurance is worth it and I understand your point.

The way I look at it though - I pay about $120 per month in car insurance for a car that is worth about the same as that ring so $21.75 per month for the ring doesn''t seem so bad.

 

[solange]

I just called Liberty Mutual and was told that they suggested the amount based on what they felt was their replacement value not the retail value. This is verified in the comments on my policy. If they could not replace the ring to my satisfaction, I would receive the full amount that it is insured for.

Since the policy was so inexpensive compared to Chubb I did not mind adding the extra few hundred dollars to the value since it did not amount to much. I sent them all the information available from Whiteflash and the appraiser along with this written statement. This is not a free standing policy but rather was added to our home owners and other jewelry so perhaps that relates to the low cost by comparison with Chubb.

I hope i never have to test this.

 

[Gonzodogg]

Date: 3/13/2006 1:35:38 PM
Author: RockDoc
Clarifying cash outs on replacement policies.


Yes, it is true that replacement type policies will offer a cash out. HOWEVER IT IS IMPORTANT TO KNOW THE FOLLOWING.

Most of the polices that are replacement type very distinctly say in the policy that the cash out amount will be at the price quoted to them to replace the item, with SIMILAR LIKE KIND QUALITY but LIMITED to the amount that THEIR replacement company quotes. Additionallly the replacement type insurance will never pay more than the amount insured for EVEN IF THE COST IN THE FUTURE IS HIGHER THAN THE AMOUNT INSURED FOR.

ADVICE: READ THE POLICY CAREFULLY.... IF IN DOUBT CALL THE AGENT OR CLAIMS DEPT of the insurance company and question their method of claim settlement.

Chubb cashes out for the amount insured which can be the internet price, the price at your local mall jeweler or wherever YOU select, plus if in the future the cost increases, they cover up to 50% additional.


Rockdoc

The way this was explained to me was that the 50% additional is only if you are having the ring replaced - NOT for a cash out.

 

[aphisiglovessae]

I will have to check my policy when I get home (about 30 minutes from now), but I don't think that the 50% extra is for replacement only. Also, when I got my stand-alone policy I had the choice of insuring it for what we paid for the ring or the appraisal value. The difference in premiums wasn't very significant to me so I insured it for the appraisal value. I would ask what the difference in premiums would be for both values before deciding on the insured value.

ETA: An appraisal was not required by my agent.

 

[Gonzodogg]

Date: 3/13/2006 4:44:14 PM
Author: aphisiglovessae
I will have to check my policy when I get home (about 30 minutes from now), but I don''t think that the 50% extra is for replacement only. Also, when I got my stand-alone policy I had the choice of insuring it for what we paid for the ring or the appraisal value. The difference in premiums wasn''t very significant to me so I insured it for the appraisal value. I would ask what the difference in premiums would be for both values before deciding on the insured value.

ETA: An appraisal was not required by my agent.

That would be a big help, thanks

 

[aphisiglovessae]

The following is directly from my policy terms (hopefully it''s readable):

 

[icekid]

very helpful thread!! thanks so all who have contributed

 

[aphisiglovessae]

If what I posted was not readable, let me know and I will enlarge it.

 

[RockDoc]

Date: 3/13/2006 4:17:48 PM
Author: Gonzodogg

Date: 3/13/2006 1:35:38 PM
Author: RockDoc
Clarifying cash outs on replacement policies.


Yes, it is true that replacement type policies will offer a cash out. HOWEVER IT IS IMPORTANT TO KNOW THE FOLLOWING.

Most of the polices that are replacement type very distinctly say in the policy that the cash out amount will be at the price quoted to them to replace the item, with SIMILAR LIKE KIND QUALITY but LIMITED to the amount that THEIR replacement company quotes. Additionallly the replacement type insurance will never pay more than the amount insured for EVEN IF THE COST IN THE FUTURE IS HIGHER THAN THE AMOUNT INSURED FOR.

ADVICE: READ THE POLICY CAREFULLY.... IF IN DOUBT CALL THE AGENT OR CLAIMS DEPT of the insurance company and question their method of claim settlement.

Chubb cashes out for the amount insured which can be the internet price, the price at your local mall jeweler or wherever YOU select, plus if in the future the cost increases, they cover up to 50% additional.


Rockdoc

The way this was explained to me was that the 50% additional is only if you are having the ring replaced - NOT for a cash out.

Chubb always pays in cash - UNLESS you choose to have their sources replace the article for you. But that choice is your decision and option.

Obviously an insurance company isn''t going to roll over and play dead, and just write a check for more than the insured value without some substinate proof of the replacement cost. Chubb assumes that you need the extra money to go buy a new ring/diamond etc. so that is how the payment over the stated value is calculated.

It probably would require some reasonable "evidence" that they pay more than the stated value, but that shouldn''t be too hard to do if in fact the prices or costs increase.

Rockdoc

 

[aphisiglovessae]

This may help explain that (the first part):

 

[aphisiglovessae]

Here's the claim info for property coverage:

 

[aphisiglovessae]

More... Sorry for all the pics. It was easier than typing it all out.: