Allstate and Tiffany Rings

[ked123]

I currently have my diamond solitaire and wedding band insured as "scheduled property" on my condo insurance with Allstate. I want to make sure in case of a loss, the merchandise is replaced with Tiffany merchandise. I have had these insured for 2 years with Allstate. I was looking into changing insurer''s for home and auto (lower rates). In talking with State Farm, the agent mentioned not only State Farm, but all insurer''s, would replace the item with "like and kind" meaning the specs of the stone would be the same, but it would not be from Tiffany''s- they would simply choose the cheapest vendor to replace the item. In discussing this with Allstate, it became clear that they just didn''t know what their policy was for this situation. Honestly, I have no idea what would happen in case of a loss with them.

I notice Jeweler''s Mutual and Chubb are both highly recommended on here. Chubb is out for us since in calling several local agents they wanted us to be able to insure a home of at least $600,000 (not there yet) along with the jewelry. They do not issue stand alone jewelry policies anymore.

So, do you think it is best for me to switch to Jeweler''s Mutual at this time? Am I setting my self up for risk if I stay with Allstate? Would I be any better off with JM or would it be basically the same problem?

TIA!

 

[denverappraiser]

Allstate is a reputable company. Talk to your agent about details of your coverage. That’s what they’re for. Your SF agent is wildly overstepping his bounds to speak on behalf of all insurance companies. If you want to know how Allstate handles claims, talk to someone from Allstate, JM will tell you how they do it, etc. They are not all the same and even the same company isn't going to be the same on all policies they offer or in all places.

Check the appraisal that you submitted when you bound coverage. If you don’t have a copy, ask you agent for one. The description in this appraisal is what will be used as the definition of ‘like kind and quality’. This includes complying with applicable trademark and copyright laws. Given proper documentation and an otherwise valid claim, most will replace Tiffany goods with comparable Tiffany goods.

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

 

[ked123]

Thank you, Denver. That is really good advice to check directly with Allstate, and that is what I did initially. My agent''s office didn''t seem very versed in engagement ring policies. I spoke to 3 different people at the office and got 3 different answers. They all say the ring would be replacement with "like and kind" merchandise (in terms of color, cut, clarity) but no one can confirm this would also include the brand. I finally got ahold of the actual agent and she referred me to the underwriters of the policy. I called the 800 number for Allstate, and I am still awaiting a call back. You wouldn''t think that this would be that difficult of a question to answer, and their inability to do so is making me worried about what would happen if I did have a claim.

I also spoke with JM, who are very clear on the situation (thank goodness). The problem with them is that I would need to front the money for a replacement ring, then submit the receipt to them for reimbursement. This does not seem like the optimal solution for me, but it is hard to say when I can''t really compare with what would actually happen in case of a loss with Allstate. Who knows, it could be worse.

 

[Diamond Confused]

It''s much cheaper to insure it under homeowners insurance and there is a way to get the actual value of the ring. Insurance compnaies usual write policies under a type termed replacement costs. This guarantees like quality which for a Tiffany ring doesn''t mean much since they can basically send you to the diamond distrct . What you need to do is ask that it be insured under agreed value. If your ring is insured for 25k they will give you 25K (not sure how inflation plays into this).
I''m not familiar with allstate so I can''t say that they for sure will do agreed value.

Your best bet is to go through an insurance broker. THey can find you the best price and the right coverage. Most reputable brokerages will not charge you a fee and will give you free quotes. If you are in southern california I can give you some names.

 

[denverappraiser]

Date: 4/27/2009 4:28:20 PM
Author: Diamond Confused
It''s much cheaper to insure it under homeowners insurance and there is a way to get the actual value of the ring. Insurance compnaies usual write policies under a type termed replacement costs. This guarantees like quality which for a Tiffany ring doesn''t mean much since they can basically send you to the diamond distrct . What you need to do is ask that it be insured under agreed value. If your ring is insured for 25k they will give you 25K (not sure how inflation plays into this).

I''m not familiar with allstate so I can''t say that they for sure will do agreed value.


Your best bet is to go through an insurance broker. THey can find you the best price and the right coverage. Most reputable brokerages will not charge you a fee and will give you free quotes. If you are in southern california I can give you some names.

This is not entirely correct. ‘Like kind and quality’ is not limited to only the gemological properties of the stone(s). By accepting the appraisal and binding the policy they are agreeing to that as the standard for what is like kind. They are, of course, under no obligation to accept your application and they can write whatever terms they can get the state insurance commission to agree to but they can’t just ignore some of the value characteristics of a piece because they find them inconvenient. Tiffany branded goods cost more than otherwise similar goods from most other designers and to ignore this is not replacing with like kind. Replacing an original with a knockoff is not like kind, even if it’s a really good knockoff.

Although declared value jewelry policies are available in some cases, they generally are significantly more expensive, sometimes as much as triple, and aren’t available in all markets. Chubb is the biggest provider of these. This route is definitely worth considering if it’s available and if the prices are competitive.

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

 

[Diamond Confused]

Date: 4/27/2009 4:52:02 PM
Author: denverappraiser

Date: 4/27/2009 4:28:20 PM
Author: Diamond Confused
It's much cheaper to insure it under homeowners insurance and there is a way to get the actual value of the ring. Insurance compnaies usual write policies under a type termed replacement costs. This guarantees like quality which for a Tiffany ring doesn't mean much since they can basically send you to the diamond distrct . What you need to do is ask that it be insured under agreed value. If your ring is insured for 25k they will give you 25K (not sure how inflation plays into this).

I'm not familiar with allstate so I can't say that they for sure will do agreed value.


Your best bet is to go through an insurance broker. THey can find you the best price and the right coverage. Most reputable brokerages will not charge you a fee and will give you free quotes. If you are in southern california I can give you some names.

This is not entirely correct. ‘Like kind and quality’ is not limited to only the gemological properties of the stone(s). By accepting the appraisal and binding the policy they are agreeing to that as the standard for what is like kind. They are, of course, under no obligation to accept your application and they can write whatever terms they can get the state insurance commission to agree to but they can’t just ignore some of the value characteristics of a piece because they find them inconvenient. Tiffany branded goods cost more than otherwise similar goods from most other designers and to ignore this is not replacing with like kind. Replacing an original with a knockoff is not like kind, even if it’s a really good knockoff.

Although declared value jewelry policies are available in some cases, they generally are significantly more expensive, sometimes as much as triple, and aren’t available in all markets. Chubb is the biggest provider of these. This route is definitely worth considering if it’s available and if the prices are competitive.

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

Yes in theory but it's best not to insure under replacement value n jewelry because it implies like quality. I worked as in insurance broker for 7 years and whatever we could get on an agreed value we would do it.

Under homeowners it is fairly easy to get agreed value and much cheaper than a monoline policy(insures only one thing). Several companies are available and that's why I suggested going through a broker. They know what will be the ideal route.

 

[Octavia]

I have my ring insured as a rider on my Allstate policy, and when I checked on this my agent said that it would have to be a ring with substantially the same specs from Tiffany. She said that with a brand name, it's not considered "like kind and quality" unless they replace it with the same brand. I certainly hope she knew what she was talking about, but I'll definitely check next time I speak to her.

 

[ilovedogs]

I have Allstate and have been through the claims process. I damaged my engagement ring stone last summer. They were amazing to work with. I had the option to use their jeweler to replace the stone but when I told them I wanted use my own jeweler (James Allen) they just cut me a check. Had it within a week.

In my case they wanted to purchase the damaged stone so I had to meet with their jeweler to get his "opinion" on what he thought the damaged stone was worth. He told me $300, mind you it was a very, very small chip that you could not see with the naked eye. Instead of selling it to Allstate they gave me the option to keep the damaged stone minus $300 off the payout. This was a 1 ct stone that was purchased for close to $6500. So I got to keep the damaged stone (had it set into a bezel pendant) and they cut me a check which allowed me to upgrade to a 1.25.

Overall extremely happy with them......oh and our insurance went down this year. Doesn''t get much better!!