State Farm Personal articles insurance?

Question

Anyone purchase this? I insured a ring for $6900 and now lost it. They said I must go to their jeweler. Do they usually find bad jewelers that sell cheap diamonds? I would hate for them to say it's worth $3000 when it was appraised for $7000.

Thanks!

Answer 1

State Farm has ways of getting the same quality items at a much lower cost.  On a PAP they will use the stated amount in the policy and you will get a replacement of similar value, if not the exact same ring.  They are very picky with the companies they use to repair and replace items, and have strict guidelines that must be met before that company will be used.  Just be diligent & stay on top of the adjuster to get exactly what you want.  They're not out to rip you off, but they don't want to pay retail if they don't have to.

Answer 2

OK, first of all, you didn't pay the appraised value for that ring.  NO one does.  It's a severely inflated value.  YOu probably paid around $5K, and they gave you that apprasial to make you feel like you weren't being ripped off at the jewelry store of purchase.

Second, if you're replacing the ring, State Farm will get a wholesale deal on the ring - less than even you paid for the original, for the same color, cut, clarity, and carat weight diamond.

If you want to have a "stated value" policy, where you get the insured amount, it costs about half again as much, and then they write you the check and you can go to whatever jeweler you want.  Otherwise, you'll have to use their wholesaler.  

You can feel free to ask for an appraisal with detailed description of the diamond - including any flaws, it's "fingerprint" so to speak, then take that diamond to the place that gave you the first appraisal, and pay for another appraisal.  IF there's a huge difference between what the old one and the new one is worth, then you call your agent, and have them call the adjuster, etc.

But really, it's not going to be a bad jeweler or a cheap diamond.  It will be the equivelent.

Answer 3

They are just trying to control what they have to pay for a new one. They will go by your original appraisal (four C's) when replacing your ring. You will get a comparable ring but State Farm will probably be paying wholesale prices vs the retail $6,900 you paid.