Chubb - 150% payment

[medoodoo]

Hi everyone,

I just got a chubb valuable articles policy for my girlfriend''s engagement ring. After reading the policy a couple of times, I''m a bit confused about this part of the policy:

Itemized Articles - Total Loss:
"If the itemized article is totally destroyed or lost, we will pay the amount of itemized coverage for that article. However, if the market value of the itemized article immediately before the loss exceeds the amount of itemized coverage for that article, we will pay its market value immediately before the loss, up to 150% of the amount of itemized coverage for that article. The maximum amount we will pay for a covered total loss is the amount of itemized coverage shown in the Coverage Summary for the applicable category of valuable articles."

Now, is it me, or does the last two sentences contradict one another? one says they''ll pay "up to 150% of the amount of itemized coverage for that article". The other says "the maximum amount we will pay for a covered total loss is the amount of itemized coverage".

Thanks for your input.

 

[ame]

My thought on that when I read it myself (I have Chubb) was that if the market value went up right before you lost it you would get a bigger payout to make up for that. Otherwise you get what you insured for.

 

[denverappraiser]

Medoodoo,

Good question. By the way, special kudos for actually reading your contract. Far too many people seem to skip that step.

For the best answers to such questions, ask your agent or Chubb

Make sure you understand what they mean by their terms. ‘Market value’ in particular can vary substantially from definition to definition.

I read it that if you lose an item that has a market value greater than what you’ve defined in the policy, they will pay up to 150% of the defined value for that particular item. The maximum that they will pay is the aggregate value of the items in that category on your policy. Most people have more than one item on their policy and a loss does not normally include every item listed but, if such a loss did occur, they would only pay the face value of the policy.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[oldminer]

Chubb is being very fair in offering such great coverage. The caveat is that the item must have very recently increased in value rather than having been on the policy for less than full value in recent months. They are giving people in a rapidly rising market a value added protection PROVIDED that full coverage is generally carried on the items covered.




If you are underinsured from the start, Chubb and other insurance companies will resist paying out more than the normal maximum of coverage. Their fees are based on the values you submit to them, and if you shorten their profit, they will eventually shorten your payout when the time comes. It makes good sense.

 

[reena]

OMG, i am so glad you asked that question, i was puzzling over the EXACT same thing not two days ago and thought i must be going nuts!