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Is an appraisal necessary for Chubb insurance?

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londonblue

londonblue

Shiny_Rock
Joined
Dec 7, 2004
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I''m having my rings insured under Chubb and wanted to find out if an appraisal is recommended by you pricescopers. The agent recommended that since my item is of smaller value and less than 20k that I should get the ring appraised and insure it for the appraisal amount. His explanation was that so I would be adequately covered in case of a loss. In addition he calculated my total insured amount to include taxes I would have had to pay if I had bought in state.

I am just wondering if this the appraisal really necessary as it''s not as if I got cut rate deals on any part of the process. Currently the rings are insured for their purchase prices + tax. Am I wrong in assuming if I should suffer a loss or major damage within the next year that I would not have too hard a time replacing the rings with something of equal value given Chubb''s additional coverage of up to 150% insured value?

I''ve sent complete detailed descriptions of both rings, diamond melee quality/color/size, center stone specs, photos, every last detail that described the rings. While it would be nice to get an appraisal, it won''t come cheap. That part I don''t mind, but I would rather not pay higher premiums if the rings appraise for significantly more than I paid for them. Or what if they appraise for less, then I would want to stick to insuring for what I spent.

My premium seems to work out to ~1.9%
 
Chubb requires an appraisal if the item is valued in excess of $ 50,000.

What Chubb does require, is a good description and the lab report for the stone(s) set in the item.


WHY?

It is the basic nature of the policy. Chubb''s policy is an AS AGREED/ STATED VALUE policy which is far different than the replacement type.

Simply explained this is exactly what it is called an....... agreed value. The insured and Chubb agree on a stated value, and very simply said the item is insured for that. If the insurance company doesn''t agree with the value, they can take the option of not agreeing.

They are willing to accept your purchase receipts, lab report and description of the setting, as to evidence of value... their underwriter then reviews it and how much you want to insure it for ( Chubb will insure for a little more than the purchase price if you have a sensible reason do to that. Just one instance is if you buy an item at a distress sale, or a special price, or even a used item. Replacing a used item with new is how the claim is settled with them, so in the case of a used item purchased at a "lower price" replacing it may cost more, so they would insure it for more if you request it. They won''t probably accept a stated amount that is greatly overvalued such as insuring an item for $ 25,000. that you recently paid $ 10,000. for. But Chubb is very flexible in that sense with just a little explanation.

The big difference is WHO will make the replacement and HOW in the event of a loss between Chubb''s policy and the more standard replacement policies.

With Chubb you purchase the item where you want, and they reimburse you even up to 150% of the insured amount. In a replacement policy the company is going to buy the replacement in the least expensive market they can access, with the ultimate pay out amount the same as the value it is insured for.

Hope this helps.

Rockdoc
 
Thanks RockDoc!

That does clarify their policy better for me ( I haven''t yet received the official paperwork to peruse myself ).

So I guess the point is that as an "agreed value" that Chubb has to agree to my stated value for the items. I will be getting a detailed invoice from the jeweler this week as the item was custom. I did receive a discount for having both rings made together, but I insured them for their prediscount amounts (assuming I might have to replace only 1 lost ring at a time). I also have the AGTA certificate that verifies my sapphire center stone as natural and unheated.

So do you know for an amount in excess of 100% of insured amount, is that only considered if you seek to replace the original ring? For example, what if we decide that we''d like to try a different style, or center stone and want to have a new ring made using a diamond or ruby center stone. I assume in those cases that Chubb would just send a check for the original insured amount rather than allowing someone to buy a completely different ring that costs up to 150% of the insured amount?

I definitely like the Chubb''s policy because I don''t how easy it would be to find another lovely cushion cut sapphire in the desired size, and expecting someone else to replace a sapphire in a like color/clarity/cut under a replacement policy is something I''d very much rather avoid. I think I was very fortunate in finding the one I have now, but I definitely had a difficult time trying to search out others to compare with in the size and cut I was looking for.
 
I don''t think Chubb would pay extra for an upgrade - if the replacement was better than the one you had.

Sort of like expecting a Mercedes, when your Audi was stolen. You in all fairness pay the difference. Chubb WILL however, pay for a larger stone if one in that size is not available.

For example let''s say you insured the item for $ 10K with Chubb. and let''s also say the stone weighs 1.00 carats, and that the cost of the original ring was $ 1000.00 and the stone $ 9000.00.

Let''s say that you suffered a loss, and the only blue saph, that was a similar clarity, color, cut grade, and shape couldn''t be located, and that the only available stone was one that weight 1.30. Chubb would probably pay the additional costs. I do know of a similar claim that was paid in that manner by Chubb. In that claim the insured amount was about 14K and they paid 18,800.

In a replacement policy scenario this WOULD NOT HAVE HAPPENED. In the same instance, in order to replace the item, the consumer would have to have paid the difference. This is the major reason I suggest getting Chubb.

I think this is especially important for difficult to replace stones... one''s over 1.50 carat set in platinum or H&A cushions AGS ) asschers, princess cuts and BRANDED H&A etc.


Rockdoc
 

Rockdoc,


Most replacement policies have the upper limit of liability based on an appraisal that assigns a value greater than the actual expected replacement cost. This is the root of their biggest criticism. In the example you list, the $10k ring may very well have been valued at $13k in the policy. In the scenario you describe, they would replace with the 1.30ct. because it could still be done for less than their agreed upper limit. Their alternative in this case would be to pay $13k in cash.


Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver
 
I would love to see under "RESOURCES" a pull down menu of insurance companies and their policies.

Those companies that participate would reap the benefits of a large captive audience.

A pdf of their brochures might be helpful as well. What do you guys think?

www.metrojewelryappraisers.com
 
Date: 6/14/2006 6:37:06 PM
Author: Modified Brilliant
I would love to see under ''RESOURCES'' a pull down menu of insurance companies and their policies.

Those companies that participate would reap the benefits of a large captive audience.

A pdf of their brochures might be helpful as well. What do you guys think?

www.metrojewelryappraisers.com
Click to expand...
Hi Jeff

A good idea, but many companies offer more than just one type of policy.

Probably be a good thing for comparison between JM & Chubb because I believe each only has one offering for standalone jewelry policies ( although Chubb has different insurance if tied in with their homeowners or renters insurance).

I also think the terms and conditions with these two companies are fairly similar from state to state. But I think many of the guidelines and terms of the other companies vary. The last time I was told - I head Allstate had five different type policies that covered jewelry.

The other "problem" is that insurance companies don''t always provide a copy of the policy in advance. In addition some companies add exclusions in one area, that in others they don''t, and still others have additional endorsement clauses as well, that sometimes are written on a case by case basis.

Rockdoc
 
Our Chubb agent didn't ask for a copy of the GIA certificate...I just faxed her over the 1 page quickie appraisal from the vendor, which was too much, and told her what I wanted to insure it for (less than the appraisal but a little more than what I paid because of two reasons, availability and price hikes...) and that was that.
 
Hi Rockdoc,

I certainly realize that "one size doesn''t fit all" but a simple "primer" of services offered might just be a huge help.

Insurance is complex and complicated for any consumer....maybe Chubb and JM would like to get the ball rolling here

and just offer some basics on "where to begin."

www.metrojewelryappraisers.com
 
Hey Mara,

I am also insured with Chubb and so are several of my friends. I was told I could either do the appraisal amount or the purchase amount, nothing in between.

Who is your agent and how did you hear about her?
 
Hi Arnel_Regina!

I got my policy for chubb through Carla Yanese in SF...

Carla J. Yanase
Hub International Personal Insurance
101 California Street, #2760
San Francisco, CA 94111
Direct: 415 262 1467
Fax: 415 262 1488
Mobile: 415 307 8963
License #0623833

She was SUPER prompt...I emailed her that morning and by that afternoon we had faxed documents from her that we had to fill out, we did that night, and I sent the appraisal and documents back via fax the next morning, and told her what I wanted to insure it for. I think that honestly it depends on your agent as we see so many times on here that agents say this or that, but it seems like nothing ever is consistent. Good luck!
 
hi Mara,

it sure seems like all agents do things differently. do you mind my asking what sort of information you had to fill out? I think my agent must have done it for me, because he asked me for my info, address, dob, type of residence, etc and now I''m insured. I just hope I''m not missing any paperwork! =)
I think all I have to do is sign something now.
 
London... it sounds like basically the same info, it was just about information on us, jobs, residence, and then information on the piece and the value, etc. I guess she could have asked but we had to sign the paperwork and refax. But yeah I definitely think that each agent has their own requirements. I was glad Carla was so easy to work with as I didn''t want to run into the whole having to insure other property with them etc. It was very simple.
 
Mara,

You are so helpful. I usually don''t post but that doesn''t mean I don''t drool over your photoshoots with your baby, along with two friends from work and 3 family members. I think when my policy runs out I''ll switch agents. I don''t think I need to insure a ring for the appraisal value since I know for a fact it''s overinflated...of course I find this out through ps after the fact.

thanks Mara for all your help.
 
great! thanks everyone!
mara - i can''t even conceive how you can get to 18,000 posts! =)

So far from what I can tell, ~2% seems average for the premiums in the SF bay.
We''re probably going to get our ering appraised anyway for fun
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heeh arnel, glad you like my photoshoots..i''m running out of flowers in my yard to photograph!! i agree re: dropping your $$ down if the appraisal is inflated and they often are.

londonblue, i didn''t even notice i was at 18k...that IS alot!
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i have been here 3.5 years though so maybe that evens it out a bit?
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