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Allstate vs. Chubb

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vespergirl

Ideal_Rock
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Jan 29, 2007
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5,497
Hi everyone,

I had a horrible dream the other night that I accidentally smashed my ring, and then I woke up in a panic wondering about my insurance policy. We are covered by Allstate, but from what I read on other threads here, they have a "like & kind" replacement policy that I''m not comfortable with - I would rather have a check cut to replace my ring if possible.

I contacted Chubb, and they quoted me $378 per year just to insure the ring, as opposed to the $198 that I''m paying Allstate right now.

Do you think it''s worth it to pay the extra to be insured by Chubb? The extra money wouldn''t be a hardship - it''s only an extra $15 per month, so I''m thinking it may be worth it.

Can any of you guys give me feedback on working with Chubb or Allstate on replacing lost or damaged jewelry?

Thanks!
 

MP

Shiny_Rock
Joined
Jan 24, 2008
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200
That sounds a little strange to me that Chubb would be charging you that much. What size center stone do you have in your current ring? I have a Chubb policy on my future fiance''s ring and it''s outstanding. As long as it''s not within the first three years of you owning the ring they will cut you a check with almost no questions asked at the appraisal value. If something happens to the ring within the first three years of the policy they will initiate an investigaition to make sure it''s not fraud.

I''d definitely go with Chubb over any other insurance for the ring. As long as it took me to find the center stone and come up with the right setting design makes me ultra sensitive to wanting coverage to where I can go and get another ring of my choosing.
 

Brilyant

Shiny_Rock
Joined
Dec 9, 2007
Messages
219
I''m sorry to barge into this thread, but I didn''t really want to start another insurance thread, and my situation is similar (although I''m a step behind the thread starter). Can someone tell me how Chubb, or any jewelry insurance works? If the ring and diamond are appraised for, say, $9000, how much will it cost to cover that per year? Is there a sliding scale? Who can I contact, and is it easy to purchase a policy? Is it all over the phone, or...?

Thanks, and sorry once again.
 

surfgirl

Ideal_Rock
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vesper, there''s tons of threads on this...
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If you dont want Allstate telling you what they''ll replace your ring with, and you want total control over that, then you''ve answered your own question, no?
 

krisvrn

Brilliant_Rock
Joined
Nov 15, 2007
Messages
657
Date: 3/13/2008 11:55:34 AM
Author:vespergirl
Hi everyone,

I had a horrible dream the other night that I accidentally smashed my ring, and then I woke up in a panic wondering about my insurance policy. We are covered by Allstate, but from what I read on other threads here, they have a ''like & kind'' replacement policy that I''m not comfortable with - I would rather have a check cut to replace my ring if possible.

I contacted Chubb, and they quoted me $378 per year just to insure the ring, as opposed to the $198 that I''m paying Allstate right now.

Do you think it''s worth it to pay the extra to be insured by Chubb? The extra money wouldn''t be a hardship - it''s only an extra $15 per month, so I''m thinking it may be worth it.

Can any of you guys give me feedback on working with Chubb or Allstate on replacing lost or damaged jewelry?

Thanks!
that seems high but it depends, how much are you getting the ring insured. Also they pull a check sort of like a credit check but they call it something else (sorry I can''t remember the term) but that also affects premiums. Allstate could be cheaper because you might have a package deal (car, house, etc insurance?)
 

surfgirl

Ideal_Rock
Joined
Apr 5, 2007
Messages
4,438
It''s really not that high at all, depending on the value of her ring. We pay more than that here in Socal as do those in NYC. It''s all related to local crime rates, etc. IIRC
 

vespergirl

Ideal_Rock
Joined
Jan 29, 2007
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Hi guys - thanks for your feedback - I think that it''s cheaper through Allstate because I do also have our house & my car insured through them, so I got a discount. The discount for a package deal with Chubb wasn''t as good - the ring would cost $337 per year to insure instead of $378, which isn''t that much of a savings. The house insurance with Chubb was a lot more expensive than what we''re paying Allstate, so it looks like I won''t save money if I move over all of our insurance to Chubb. They were hesitant to just insure the ring, but they said they would do it. I think I''d rather pay $15 per month extra to insure the ring but have peace of mind!

The center stone is a 2.01 ct. G SI1 in a plat. solitaire setting, and it was "appraised" by the diamond dealer for $30,000. Obviously that''s not what my husband paid for it, but I know they always set the appraisal value high.

I never had an independent appraisal done, but since that could cost a couple hundred, and I don''t need it with Chubb, I think I''d rather just pay the extra for insurance instead of having to get the whole detailed appraisal. And I''m not sure that that would even get me a check instead of a "like & kind" replacement from Allstate.

I''m going to have the diamond re-set within the next year, not at the vendor that I bought the diamond from, so I feel much more secure that if the diamond gets chipped or damaged by the jeweler resetting it having it insured by Chubb & getting to pick out my own diamond if I need a replacement.
 

niceice

Brilliant_Rock
Joined
Jan 29, 2003
Messages
1,792
If I recall correctly, Allstate is in the practice of calculating the value of their policies based upon "replacement cost coverage" and Chubb issues "market value coverage"... Translated, that means that in the event of a loss, Allstate will pay based upon what their current replacement cost for an item of similar like and kind; Chubb will cut a check for the value of the policy. I''m not an insurance agent, so check, but that is how I remember it and policies that pay the amount insured usually cost more than policies which will only pay replacement cost in the event of loss.

We''ve worked with a lot of insurance companies to replace lost, stolen or damaged jewelry items and in my experience, the best companies to work with have been State Farm (replacement cost coverage) and Chubb (policy value coverage) in terms of their ease of claim process.
 

surfgirl

Ideal_Rock
Joined
Apr 5, 2007
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4,438
Date: 3/14/2008 10:19:51 AM
Author: vespergirl
Hi guys - thanks for your feedback - I think that it''s cheaper through Allstate because I do also have our house & my car insured through them, so I got a discount. The discount for a package deal with Chubb wasn''t as good - the ring would cost $337 per year to insure instead of $378, which isn''t that much of a savings. The house insurance with Chubb was a lot more expensive than what we''re paying Allstate, so it looks like I won''t save money if I move over all of our insurance to Chubb. They were hesitant to just insure the ring, but they said they would do it. I think I''d rather pay $15 per month extra to insure the ring but have peace of mind!


The center stone is a 2.01 ct. G SI1 in a plat. solitaire setting, and it was ''appraised'' by the diamond dealer for $30,000. Obviously that''s not what my husband paid for it, but I know they always set the appraisal value high.


I never had an independent appraisal done, but since that could cost a couple hundred, and I don''t need it with Chubb, I think I''d rather just pay the extra for insurance instead of having to get the whole detailed appraisal. And I''m not sure that that would even get me a check instead of a ''like & kind'' replacement from Allstate.


I''m going to have the diamond re-set within the next year, not at the vendor that I bought the diamond from, so I feel much more secure that if the diamond gets chipped or damaged by the jeweler resetting it having it insured by Chubb & getting to pick out my own diamond if I need a replacement.
Vesper, why would you insure a ring for well over what it is actually worth? That just doesn''t make sense. And it''s a good reason for you to have an independent appraisal and tell them that you''re not looking for some inflated price but rather, actual replacement value. That''s technically what they should give you anyway but sadly many appraisers give a highly inflated pricetag, which means really nothing if it''s not really what the actual replacement cost really is.
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
9,150
Variations on this question get asked quite a bit and the big variables are the actual cost to replace, the declared value you provide to the insurer, the premiums charged and the payout procedure.

Here’s an example.
Assume you buy a ring for $10k after aggressively shopping for the best possible price. You’ve got the receipt for $10k, an appraisal from a credible appraiser for $12k and a ‘feel good’ appraisal for $20k. So what’s the best choice to use for your insurance? It’s different for different people but here’s some numbers.

Allstate Replacement type
Declared Value Replacement cost Rate Premium per year Payoff if lost Appraisal cost per 3 years Annuitized appraisal cost Annual cost per $ of potential recovery
$ 10,000.00 $ 10,000.00 1.00% $ 100.00 $ 10,000.00 $ 100.00 $ 33.33 $0.0133
$ 12,000.00 $ 10,000.00 1.00% $ 120.00 $ 10,000.00 $ 100.00 $ 33.33 $0.0153
$ 20,000.00 $ 10,000.00 1.00% $ 200.00 $ 10,000.00 $ 100.00 $ 33.33 $0.0233

Chubb Declared value type
$ 20,000.00 $ 10,000.00 2.00% $ 400.00 $ 20,000.00 $ - $ - $0.0200
Note: Actual premiums and details of coverage will vary from state to state and policy to policy. These numbers are provided as an example to show how they relate to one another. Consult with your agent for details on your own policy or one you are considering.

Using the receipt itself with the replacement policy has the highest ratio at $0.133 per year cost for each dollar recovered in the case of a loss and the worst is using the inflated appraisal at roughly double and both are through Allstate. The difference is in the appraisal, not in the insurance policy. Notice that Chubb comes in near the high end of this as well because the other big difference has to do with the premium charged. Chubb is consistently more expensive than the replacement companies and, in some places by as much as triple. The difficulty of using the receipt is that if the price goes up you are underinsured. From a pure financial efficiency, this is ok but for most people it’s an uncomfortable position to be in. They prefer a bit more wiggle room in case their preferred vendor is no longer available or if prices go up.

Chubb is a first class company and they have lots of happy customers but their declared value jewelry product is no panacea. For many customers the replacement approach is not only acceptable, it’s preferable.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Jewelry Appraisals in Denver
 
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