Complaint Review

Geico/Stillwater Insurance

Report: #1126182

Mon, February 24, 2014
Mon, February 24, 2014
Reported By:
Clarkston Washington
Geico/Stillwater Insurance
Insurance Companies

Geico/Stillwater Insurance Lied about homeowners policy coverage FREDERICKSBURG Virginia

*Consumer Suggestion: Caution Perhaps For Next Time!

This is a review for Geico and Stillwater Insurance Co. I switched my home and auto insurance from a local company to Geico because they were about $1800 cheaper a year than I was previously paying. On my homeowners insurance I had additional coverage for several pieces of scheduled jewelry. When I was reviewing my policy with the Geico agent I was told the coverage was the same as I had before. I was very adamant that I have the same coverage (in the event of a loss the payout would be the appraisal amount) on my jewelry, as I had several family heirlooms that were to be insured.  I even sent them my current policy to compare their information to. All seemed in line, and I purchased the policy from Geico. In December I had a break in at my home and about $36k worth of jewelry was stollen. I just received a letter from Stillwater Insurance stating that they do not pay the insured amount, but lowest amount they can find the item for. My $28k family heirloom bracelet is now being "replaced" for $17k.  I was told when I purchased the policy that I would have the same coverage on my jewelry and I was lied to, they will not replace it for the appraised amount, only their determined replacement amount. 


I would've never agreed to this type of coverage if I would've known that they do not pay the appraisal amount on scheduled jewelry, as that is the type of policy have always had for these items.

This report was posted on Ripoff Report on 02/24/2014 03:43 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Click Here to read other Ripoff Reports on Geico/Stillwater Insurance

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#1 Consumer Suggestion

Caution Perhaps For Next Time!

AUTHOR: Agent Finder Directory - ()

After diligently reading the ripoff report as an Executive Manager of a national producer of property insurance in multiple States,  I am convinced that Stillwater Insurance Group is an innocent party to the situation.    It is primarily important to understand the complete operation of GEICO which is often misunderstood by the Consumer. 

GEICO is primarily a Personal Lines Automobile Insurer; although, there are some ancilliary lines which may also be offered.  GEICO does not insure Property and has a wholly owned agency to simply broker those products that are not directly insured with the carrier.   

Stillwater Insurance Group, Travelers Insurance, and other carriers have entered into an agreement with GEICO Agency following a promise of production from the giant Auto Insurance marketer;  GEICO is well known by the consumer public as the carrier that regularly airs advertisements showing a Gecko speaking with a British accent. 

It may have been possible that the retail agent involved may have misrepresented the policy, although it seems that the consumer offered a copy of his/her prior policy to the GEICO agent showing the Scheduled Jewelry floater/endorsement, it is very possible that the consumer misunderstood the terms of coverage afforded and may not have reviewed the policy after purchasing the coverage. 

For future reference,  any replacement cost policy will simply offer the value to replace an item without the discount of depreciation; the insurance carrier will pay the replacement cost of an insured item minus the applicable deductible.  If a consumer absoltely wishes to insure an item for appraised value and will not accept a replacement purchased at a lesser value in the future, the only way to insure the item is with a 'Stated Value' policy. 

This is an unfortunate situation but too often, the blame goes directly to the carrier who simply takes the risk based on an insurance contract agreed upon at purchase.  It is important to understand all parties involved in an insurance contract; in the case of GEICO representing another carrier, they are acting as an agent or broker and are not free of the responsibility of explaining all details of coverage. 

If the insured had the items replaced at a lesser value, the reason for the insurance would simply be to replace the items and it would be prudent of the carrier to replace the items at the lowest cost as would any insured person.  As we know, sentimental value is not insurable and it is unfortunate that family items will never be replaced; perhaps in this case, a Stated Value Policy may have been a better way to go but even in that case, the family items were not going to be recovered. 

We wish the insured some peace of mind and hope that others will learn from this occurrence.   The present market place has become inundated with people shopping for insurance at the lowest premium;  this story is a perfect example why chasing the lowest premium is NEVER the best option. 

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