Pure Insurance Review

RATINGS BY CATEGORY
Premium PriceNot Applicable
Claims Process
Consumer Feedback
Financial Strength
OVERALL
Products  |  Price  |  Claims  |  Complaints  |  Financials  |  Bottom Line

Pure Insurance Summary

Privilege Underwriters Reciprocal Exchange (PURE) is an insurance cooperative that works primarily with high net-worth individuals and families. Their clients are referred to as members, and the company is structured in a manner similar to a mutual insurance firm. Premiums from their members are pooled, and claims are paid out of that pool. Any money that is left over after claims and operations (profit) is held in special accounts called subscriber savings accounts. Each member has their own account, and any profit it is distributed proportionately based on total premiums paid for that year. This money can be used by Pure to pay future claims, and is distributed to the individual (or estate) if the membership is ever canceled.

Pure Insurance currently has over 20,000 members and they operate in 44 states across the US. As a relatively new company (founded in 2006) their expansion has been boosted recently by a national ad campaign where they promote the slogan, “Love Your Insurance.”

 
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Insurance Products

Auto Insurance

Pure’s Private Fleet Auto Insurance policies are designed for luxury car owners and families that have more cars than drivers. When the number of cars is more than the amount of drivers in the household, Pure claims their rates reflect the fact that not all the cars can be driven at the same time (assuming a discount). Cars are also insured based on Agreed Value, which means the total amount of coverage is determined at the start of the policy, and that amount is paid out in the event of a total loss, regardless of depreciation. It should be noted that the premium for the agreed value will also disregard depreciation. So if a car goes down in value, the premium will still be based off the agreed value.

All cars insured through Pure are guaranteed to be repaired with original equipment manufacturers (OEM) parts. The repairs for automobiles can be done wherever the member wishes, but Pure does offer a list of preferred providers referred to as their Auto Repair Network. All auto insurance policies come with rental car service, and the auto policy will follow the member worldwide. That means whenever borrowing or renting a car (anywhere in the world) their policy will cover them.

Home Insurance

Pure’s High Value Homeowners Insurance coverage offers a number of features that are either not available on standard home insurance policies or cost extra. Many insurance companies offer “replacement cost” coverage, which means the policyholder is reimbursed for the entire cost of replacing a structure or its contents, rather than the fair market value at the time of loss. However, they usually provide the market value of the lost items first, and then reimburse the rest once the items have been repurchased and receipts are submitted. Pure will simply write a check and you are free to do whatever you wish with the money. So if you do not want to buy the same belongings over again, you do not have to. You will still receive the replacement cost amount as a settlement.

In most states that Pure sells home insurance, they offer guaranteed rebuilding cost coverage as part of the policy. This means if the cost of rebuilding a home (in like kind) after a covered loss runs higher than the policy limit, Pure will still pick up the tab. This is not available everywhere, so you should consult an agent for more details. Pure also offers a unique feature they call Neighborly Settlements. If you live in a condo, townhome or apartment and a covered accident causes damage to a neighbor’s residence, (broken water pipe, for example) they will provide up to $25,000 for payment to your neighbor in an effort to help smooth things over and prevent a possible lawsuit.

Personal Excess Liability

A popular product under a unique name is Pure’s Personal Excess Liability coverage. In short, it is the same as an umbrella insurance policy sold just about everywhere else, and it performs in basically the same manner. So long as a member has sufficient auto insurance liability and home insurance liability, Personal Excess Liability extends those coverage limits in multiples of $1 million up to a maximum of $25 million. They protect against personal injury and property damage liability claims, and will help pay for legal defense and/or settlements.

Additional Products

Pure also offers a few other insurance products for their members, including:

  • Jewelry and Art Insurance
  • Flood Insurance
  • Watercraft Insurance

Pure Insurance Price (Rates)

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Pure insurance is not available to everyone, and there is no way to get an accurate auto quote to compare directly with other insurance companies. Anyone who qualifies as a high net-worth individual that is interested in signing up with Pure should contact a local agent to get a personalized quote.

Claims

Pure Insurance has a unique process for claims with their members, and they use a very white-glove approach. When a large claim is filed, a member is assigned a PURE Member Advocate® which acts sort of as a general contractor for the entire process. They work directly with the claims adjuster, the member, and any other people involved during the rebuild. The Member Advocate helps get contractors set up, can assist in finding suitable living arrangements during a home rebuild, and handles a lot of the day-to-day that goes into completing a claim.

Members are also given a $2,500 credit on any home insurance claim over $10,000 to use in helping prevent that same issue from happening again. For example, if a power outage and subsequent power restart wipes out thousands of dollars worth of electronics, the $2,500 credit could potentially be used to install a backup generator in an effort to help prevent future losses.

Consumer Research and Complaints

Pure Insurance is not currently accredited with the Better Business Bureau and maintains a B rating. At the time of this review, there has only been one complaint filed against them with the BBB in the past three years, and that same complaint coming in the previous 12 month time period. The complaint had to do with Problems with Product/Service according to the BBB’s website.

Financial Strength

Rating CompanyGradeFinancial Outlook
AM BestA-Stable
FitchN/A
S&PN/A

Bottom Line

Pure Insurance offers a high level of customer service and unique protection options for high net-worth individuals and families. Their claims process is rather distinct, and you are given what might be referred to as a claims concierge to help manage the process during large losses. Anyone that fits the high net-worth category should check them out and get a personalized quote. If you do not have sizable assets, do not waste your time because you will not be accepted as a member.


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About the Author

Eric Stauffer

I am a former insurance agent turned consumer advocate. My priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.


Comments

  1. Deb Wasil says

    We have had PURE for about 3+ years now and I just added some other homes. My only claim was a single diamond earring and it was so easy. A few questions, sign a paper and with in 2 weeks i got a 25K check. I am very happy with our insurance.

  2. Cindy says

    Eric Stauffer,

    If we have homes in Texas, Colorado (condo) and Florida (on the beach in the worst zone insurance wise), do you know off-hand if they can handle all these states? Also, any advice on picking the agent to go through? My area has 10-12 to choose from. We have been with the same agent for everything for years, but have outgrown their offerings. Thank you for any advice.

    • Eric Stauffer says

      Hi Cindy,

      According to the agent finder on the website, they have agents licensed to sell their products in each of those three states. The features and coverage can certainly vary between states, so it is best to check with them individually to see what can be covered.

      Finding an agent can be difficult, especially when you have assets in multiple states. Not all agents or agencies are legally able to sell in each state. My general advice when searching for an agent is to start with referrals. If you have anyone else in the area that already has an agent they prefer, that is a good starting point. If you are doing it from scratch, I recommend sitting down with multiple agents and see what they all have to say.

      - Which ones actually ask questions about your situation?
      - Do they try and match coverage to your answers, or just give you the most expensive policies they can?
      - Are they new? (Try to avoid freshly minted agents)

      Good luck in your search.

      Best,
      Eric Stauffer

      • Cindy says

        Thanks Eric!

        I had a secret hope that changing to this type of company would allow us to streamline all the insurances we hold.

        Your selection questions/thoughts are very helpful. I will look at the PURE web-site as I have not done that. Will also check out Chubb.

        Thanks for this fourm – very helpful!

        Cindy

  3. Eric says

    PURE is a farse. Have a large claim in a multi-million dollar home and they set my wife and i for an EUO 6 months after loss. EUO (examination under oath, very similar to a deposition) was taken over a month ago and the no one has reached out to even contact us with what their position is. Stick with Chubb or AIG.

  4. Jan says

    We are currently considering moving to Pure primarily because of our art, rugs and wine collection. My current carrier wants an appraisal or receipt for every piece of art or rug that we buy. I just found out that if a piece of art appreciates, my current carrier will only pay for the original insured amount unless I submit more paperwork. Pure, on the other hand allows us to name a figure as to what all art and rugs are worth. They will also insure wine collections. At the moment I am leaning toward PURE because it would make things much simpler. Also, their quote was exactly what we are paying now.

  5. Bob L says

    Hello Eric,

    My auto, home and umbrella policy is coming due in a two weeks and my agent suggested that I move from Traveler’s to Pure Insurance Group. As you pointed out in your column, Pure is a newer insurance carrier, and I was very impressed with some of their very unique policy benefits which were very appealing to me. I noticed that that A.M. Best Co reported, they are losing money and they appear to be losing more money each year since inception in 2006. While the “white glove/high touch service” sounds very appealing to me, the company financials and stability concern me. The agent did a “soft” credit/driving/claims history on me, and I passed with flying colors, but now that I have done my financial due diligence on Pure Insurance Co, I am hesitate about retaining them as my insurance carrier. i also did some investigation on http://www.WeissWatchDog.com, and their rating is C+, which quite marginal and Weiss indicated I may want to consider another carrier, because of their financial stability. While they may have a stable rating now with A.M. Best Company and Weiss rating service, my take away is they woul be very concerned if they had should experience a catastrophic year in claims/losses. While Pure has retained a number of large re-insurance companies to help offset any potential losses, any adverse scenario could be financially catastrophic So many great policy features in this HO5 poicy, but I am torn and was considering thinking about moving to Liberty Mutual, but I just noticed they have an even lower rating of a “C rating” from Weiss rating service, which is an independent rating service of insurance companies, banks, mutual funds, etc. Thank you for your insight and general comments, Eric.

    • Eric Stauffer says

      Hi Bob,

      First and foremost, I want to make sure you understand that Pure is a high-end insurance company. They are similar to Chubb insurance in this regard. What that means to you as a customer is premium price should not be an issue, because it will be (in most cases) substantially higher than the other companies you listed in your comment.

      They are kind of like the Rolls Royce of the insurance industry. You will pay more, but the service will be much better than a standard carrier.

      That being said, from what I understand of Weiss Watch Dog, they are an investment analysis firm that supplies ratings based on potential investment opportunities. So while similar, their advice will not match up directly with what is important for an insurance customer.

      As with any insurance company, you are free to leave at any time. So if the writing on the wall continues past your comfort zone, you could always move to another firm. Insurance companies are monitored heavily at the state level, and any sign of insolvency would surely get the siren bells ringing.

      If your looking for top-tier coverage and price is not an issue, I like Pure and Chubb. If you are looking for more of a traditional carrier, I like Liberty Mutual and Allstate.

      Good luck in your research, and if you have any more questions, feel free to ask.

      Best,
      Eric Stauffer

      • Bob L says

        Hello Eric,

        Thanks for the quick response to my question on Pure Insurance Co. I do understand they cater to a high net worth consumer,and contrary to what you stated, the quote i received from my agent for on Pure was about 40% less than my current Travelers Platinum policy. Actually Pure came in on the low end of the price spectrum, so this is very confusing. I received a number of quotes and have my homework and coverages have been very similar. Getting back to Weiss rating, they are a rating service for banks, brokerage firms, banks and I think their core business is rating insurance companies. I think every every carrier claims to have the best service in the industry, and Pure probably has great service. I understand the state insurance regulators monitor the insurance carriers very carefully and I also understand I could switch to another company if I so choose. I started with Travelers three or fours years ago and as I stated earlier, their rates rose dramatically. Getting back to Pure, the 2013 financials will be released in the not too distant future, so this will be interesting to see what they post. Thanks again for the quick response, Eric!

        • Eric Stauffer says

          Hi Bob,

          If Pure is on the low end, that would be the front-runner for me. Depending on what type of home and cars you have, it may be that they are structured to handle your types of risks better than a standard carrier, and so can offer more competitive pricing.

          Best,
          Eric Stauffer

  6. Susan Falk says

    Pure Home Insurance was recommended to me as an alternative to Chubby which currently covers my Coop Apartment. Since Pure is such a new company. I have reservations. What do you think? Thanks for your awaited input on this matter.

    • Eric Stauffer says

      Hi Susan,

      I believe they are both good, but I do understand your hesitation given the relative newness of PURE. Time will ultimately tell if they live up to their reputation. Chubb has a longstanding history of doing right by their clients, so it may ultimately come down to price.

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