Anyone have any experience with State Farm claims?

[diamondfool]

My friend is beside herself. She got engaged 6 mos ago and had a beautiful D SI1 princess cut. She lost her ring yesterday. They have it insured through State Farm but she''s not quite sure how that''s going to work. She''s afraid that she won''t be able to pick her jeweler again and get what she had before. Her ring was insured for around 8k I think. I know they don''t cut you a check directly but does anyone know if they will let you pick your jeweler and give you fair market from their preferred list (I know they want you to go to their jeweler but who wants to get ripped off???). She is just beating herself up. Her fiance is furious and to top it off the wedding is only 2 mos away. I pointed her in this direction for guidance on buying another stone but again...I''m not even sure she''ll have a choice where she can go.
Thanks for any info anyone might be able to share.

 

[strmrdr]

It depends on the adjuster the ones in my area are bad and I left them for that reason.

The key thing to remember is that you dont have to accept their first second or even third offer.
You are allowed under there policies to get 3 quotes for a replacement and they will pay the least expensive one but some adjusters will not tell you that.
Tell her to be firm but polite and not accept anything less than what she had.

 

[diamondfool]

Thank you. I guess from what she said is that they told her she had to go to one of their preferred jewelers and she could pick anything she wanted basically for the allotted amount. She told them she had a stone that was picked and then set and that''s what she preferred. She outright asked them if she HAD to get what she originally had and they said no...just what she wanted. So I don''t know how this is going to work for her. I''m hoping she''s not disappointed.

 

[skphotoimages]

Unfortunatly I've had to use them twice. Once was in 1999. My ring from my first marriage was stolen my a jealous boyfriend that I was breaking up with. He of course denied it (sounds like Jerry Springer huh?) I didn't have an appraisal with an actual amount, just something Helzberg (I know I know) had given me with the ring discription. State farm sent me to one of there prefered Jewelers (there were over 30 in my area to choose from). I went there and they told me what the replacement amount would be based on what the description said (which was actually twice what we paid for it. The jeweler gave me a hand written statement that I turned into State Farm and they cut me a check.
Second time was right before my husband and I got married. We moved and the movers stole his ring! It has 9 E VS1 princess diamongs in WG. Anyhow I called State farm and they asked if I wanted to just replace it or wanted the money to get something different. I think that's how they worded it. Anyhow I told them I wanted it recreated, so both they and I contacted the jeweler I got it at, and it was going to be recreated. But then the police found my husbands ring at a pawn shop in the ghetto and we got it back. The mover went to jail too! The guy got $75 for a ring that cost us $1600. HA! His ring still has this tiny scratch on the inside where the pawn shop guy checked the type of metal.
Anyhow, i live in St. Louis Mo and my statefarm agent had a HUGE list of jewelers I could go to. Everyone I would even concider was on that list. All very reputable fair dealers for B&M's. I guess that all depend on the insurance broker and the town she lives in.
Keep us posted.

 

[diamondfool]

Thank you so much for your response!
My friend called me this morning. She spoke with her agent and then she called her jeweler. Turns out the jeweler that she bought her ring from does work as a preferred agent for State Farm so she should be able to get her ring duplicated. She is so incredibly relieved.
I''ll keep you updated on her status. All I can say is at least she had insurance!

 

[jaz464]

I have a State Farm policy and if anything happens to my ring, they will cut me a check.

 

[tomswife2007]

Date: 2/22/2006 12:09:19 PM
Author: jazmine
I have a State Farm policy and if anything happens to my ring, they will cut me a check.

Same here...That''s great that your friend''s jeweler is on the preferred list. Good luck to your friend! Let us know how it goes for her...

 

[RockDoc]

Date: 2/22/2006 12:09:19 PM
Author: jazmine
I have a State Farm policy and if anything happens to my ring, they will cut me a check.

Who told you this? Is this a stated value policy? If the agent told you this, it most likely is not factual.

I have heard that State Farm MIGHT be selling Stated Value type policies, but most likely your policy is the replacement type.

Most commonly State Farm conditions, are they will replace or cash out, but only for the amount quoted to them, by their replacement source that is the lowest price.


Check over your policy very carefully. See what is written as if you have a claim, whatever is on the policy is what they will do.

In my area (Southern Fla) they have both jewelers and private adjusters assist in settling their claims. I know it is a common practice here with the private adjusters to attempt to upgrade the replacement, as they get a flat percentage over cost, but they can make anything they want on an item that is upgraded.

It has been my experience that agents do not know the procedures of settling claims. I can tell you that whatever is spelling out in writing in your policy is what the insurance company will do.

If you do have a claim with a replacement type insurance policy, it is wise to ask what the cash out amount is, as you may discover it may be far less than the amount you insured it for, and expect to get in the case of a loss.

Hope this helps.

Rockdoc

 

[AChiOAlumna]

My friend is a State Farm agent and has told me of times where he just cuts the policy holder a check....so they can choose exactly what they want for the replacement...but I think it would depend on the agent and the adjuster....

 

[Small]

I know in my policy its replacement only. I checked with them and they told me many times clients expect to call in and say they've lost their ring or had it stolen and want a check for the amount they've insured the ring for. The lady told me that it just doesn't happen that way. They want you to replace your ring and will do it for their cost.

My friend had a similar circumstance as above and she got the exact ring matched and no worries. It was lucky that her jeweler just happened to be on the preferred list. As soon as I get my new diamond, I am switching policies to Chubb. It may be more expensive but I'd rest easier knowing I could choose which online vendor is going to replace my diamond instead of trying to negotiate with SF's preferred jewelers.