Another insurance question.................

[Maxine]

I know we''ve been through this before, but I am still searching for the best insurance....want something that will insure me for possible breakage/damage, and that will allow me to get the same quality stone I have........
Just called state farm....maybe the agent just wasn''t that knowledgeable.....but I was not impressed with her answers....said it did cover all perils, but that say if you paid 8K for the stone and they could replace it for 6K, that''s what they would do.......I could envision all kinds of potential problems there.....like they really care about it''s idealscope image!!!

Any thoughts????? (everytime I have some vacation time, I try to check into this......this time I want to get some answers....will keep trying!!!)

Thanks!!!!

 

[denverappraiser]

Maxine,

Statefarm is a pretty good company but it’s important to understand what you are buying. With most of their policies, they are agreeing to replace a lost item with another of ‘like kind and quality’. They will, of course, do this as inexpensively as possible. The definition of like kind and quality will be the appraisal that you submit when you bind the policy. This appraisal will become a legal part of the insurance contract (even if they lose their copy). If the idealscope image is important to you, make sure it’s in the appraisal report. This kind of concern is one of the big reasons to get a competent appraisal instead of going with the minimum document that the company will accept. It’s not the company’s interests that you are trying to protect here.

There are other kinds of policies available, both from State Farm and other companies. The most popular one among PS regulars is a defined value policy. With these, the company will pay a predetermined amount in the case of a loss. These are popular for obvious reasons although the tend to cost 2 to 3 times as much in premiums.

Many local agents are not well informed about their company’s jewelry related products. The spend quite a bit of time worrying about cars, houses, boats and may not be current on their training in other areas. Most of the companies have 800 numbers and websites that can give you more detail.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[bar01]

Date: 6/14/2005 3:16:40 PM
Author: denverappraiser

Maxine,

Statefarm is a pretty good company but it’s important to understand what you are buying. With most of their policies, they are agreeing to replace a lost item with another of ‘like kind and quality’. They will, of course, do this as inexpensively as possible. The definition of like kind and quality will be the appraisal that you submit when you bind the policy. This appraisal will become a legal part of the insurance contract (even if they lose their copy). If the idealscope image is important to you, make sure it’s in the appraisal report. This kind of concern is one of the big reasons to get a competent appraisal instead of going with the minimum document that the company will accept. It’s not the company’s interests that you are trying to protect here.

There are other kinds of policies available, both from State Farm and other companies. The most popular one among PS regulars is a defined value policy. With these, the company will pay a predetermined amount in the case of a loss. These are popular for obvious reasons although the tend to cost 2 to 3 times as much in premiums.

Many local agents are not well informed about their company’s jewelry related products. The spend quite a bit of time worrying about cars, houses, boats and may not be current on their training in other areas. Most of the companies have 800 numbers and websites that can give you more detail.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

Good advice. Proper insurance coverage begins with a solid appraisal. I am insured with State Farm for my gals E-ring. Richard Sherwood’s extensive appraisal report, grading, and photos (I think it was over 6 pages) were submitted to them as part of the policy. In fact when they sent me the policy statement they used generic terms to describe the ring and I had to have my agent have them rewrite the policy rider statement to add "….. as described by Sarasota Gem Labs report #XXXX , dated XXXX".

 

[RockDoc]

Neil wrote

There are other kinds of policies available, both from State Farm and other companies. The most popular one among PS regulars is a defined value policy. With these, the company will pay a predetermined amount in the case of a loss. These are popular for obvious reasons although the tend to cost 2 to 3 times as much in premiums.
_______________________________________


2 to 3 times????

I can''t comment on other states, but replacement type policies such as State Farm etc,here in FL seem to range from $1.35 - $ 1.80 per hundred per year.

Chubb''s rates for As Agreed Coverage in FL is about $ 2.30 per hundred.

I know this varies a lot with the criminal statistics. I know one customer of mine had a variance of 50% in the premium as he lived in a low crime area, but the ring was going to be kept ( temporarily) in a higher crime rate area of the same state. But I would also assume that the replacement policiy rate difference would follow suit.

Rockdoc

 

[denverappraiser]

In Colorado, Statefarm seems to cost about 1% of the appraised value in premiums. Chubb seems to cost about 2.3% of the agreed value. Last I checked, Firemans' Fund defined value policies were a little higher than Chubbs but As Rockdoc points out, the rates and details of the policies can vary considerably in different states, different cities and even different neighborhoods. They will also have adjustments for the claims history of the client and the security details that you have in place. In every case, talk to the company and read your policy. The details matter.

Jewelers Mutual is a national company that sells replacement type insurance without agents. www.jewelersmutual.com I'm pretty sure their base rate is 1% although they vary from location to location as well. This is another fine reason to live in beautiful South Dakota.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[denverappraiser]

We have some very loyal Chubb customers here who are distributed about the country. What are y''all paying?


Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[sparklelover]

I had StateFarm for many years with the inflation adjustment. When I recently wanted to add my new upgrade to the policy, I was surprised how much they had raised the coverage of my other current items under the policy. The origianl e-ring was $7000 8 years ago (appraised value) now it''s $9800!! Up went my premium too. Then I learned that in case of loss they will try to replace it as close as they can with their sourcing but at the lowest cost to them. Then I thought the inflation adjustment did not make much sense at all because they will not pay you the higher amount or find a stone according to the inflation adjusted $$ amount. Anyway, I managed to stop the inflation adjustment option on the previously covered items. For the new upgrade, I did get the agent to use the invoice amount as coverage instead of the "appraised retail value" that the vendor enclosed with my purchase. I was told, in case of loss, say 10 years down the road, they could not replace the stone with the covered amount (which is today''s invoice amount) because the diamond market has gone up, they will just give me the covered $$ amount so I can do my own shopping. I can live with that.

 

[Maxine]

I just stopped off at the local apraisers...want to have two small items appraised to be added on....I guess part of my concern is the craziness that happened last year during the hurricanes....she said a lot of people are making sure they have appraisals this year....you never know when you might have to change locations!!!

My idealscope example just meant that even if you had a stone w/the exact same #''s, it might not look the same.....My company would let you go back to Tiffany, if that''s where you got the original...but don''t know if it counts for anywhere else.....will continue to make calls and get quotes!!!!!

 

[sparklelover]

I called Chubb too. They only insure your personal items as a rider if you have home owners policy with them. They do not do stand alone policy for your personal items. The agent said don''t waste your time that''s the case with all Chubb agents in state of CO.

 

[mrssalvo]

Chubb has done stand alone policies for some. here''s a link of a recent thread with contact info.