The highest percentage increase took place in August 1978 (30%). The following year the increase was 13%.
As much as it pains me to come to the defense of the insurance companies for this policy, they have pretty good reasons for doing it.
Insurance fraud is a terrible problem for them. Their clients will often claim that the damages that they have suffered in a claim are considerably higher than the actual loss. It’s appropriate and reasonable that they try to limit this behavior. Since they have never seen the item, they are relying entirely on the opinion of an appraiser, and this appraiser was chosen solely by the client (who may be relying entirely on the seller and even submitting paperwork that was prepared by the seller). This submitted opinion is often completely unreasonable. What would you have them do? Again, they’ve never seen the piece. In the case of real estate and other high value property, they will often have their own inspectors examine it but this would drastically drive up the cost of jewelry insurance on anything but the most expensive pieces. Paying out whatever amount is requested based on whatever the seller said is the road to bankruptcy. The compromise is this ‘like kind and quality’ business where the payout is based on the description, not the price. In the case of clients who submit sensible appraisals, this is fair to both parties.
I have read that Chubb automatically adds some type of appreciation to their policies, yours may have been similar to that. I had to specifically request "yes" or "no" to that type of coverage w/State Farm and just wondered if it was necessary. The Forum has spoken.
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