Renewing Insurance Policy: % Increase?

[Mara]

I got my letter of renewal today from Chubb and they asked in it if I want to automatically have them add 'inflation' into my policy.




I can choose to automatically increase my coverage by 10%, 25% or 50%

OR annually I can have them add 2%, 4% or 6% at renewal. They will increase it until I ask them to stop.




Well I don't need to increase it, it was only appraised last year. So it's not really relevant to me. I guess they didn't notice that...or maybe they thought I still thought my piece had appreciated 10/25/50% in the last year? Odd.




Anyhow my question to the experts is...would it be worth it to have them add something like the 2% annually automatically on renewal, or should I just get my pieces re-appraised every 5 years or so and update it that way?




Lastly, for those interested in Chubb...the whole Blue Nile thing has got us confused, well on their letter they have this as the information for contact:




"Chubb Insurance Solutions Agency Inc


(Blue Nile)"




So it would seem that possibly Chubb owns a portion of Blue Nile or vice versa? Anyway, still confused.

 

[pqcollectibles]

Don't know what to say here, girlie. We added all my baubles to the homeowners' and it automatically inflates yearly.

Bump to get this thread back up.

 

[Kay]

I just received the same letter and have the same question as to whether it is advisable to have the annual 2% increase built in. The appraisal I had done last year already lists the replacement price at a couple thousand more than we paid for the ring.

 

[bof]

i would suggest not opting for the automatic inflation adjustment. it is possible that in 5 years your diamond will be worth significantly less or more than what it is worth now. that price could depend more on supply and demand at that time rather than inflation.

i assume that your insurance premiums would also increase by a similar rate. i would suggest reappraising your ring if you ever think that prices for diamonds have changed significantly. you seem to spend a significant amount of time on this site so i think that you'll probably have a pretty good idea of current diamond prices.

boF

 

[glitterata]

I got that form too, & shredded it. The Chubb policy already has a built-in cushion (20% I forget) that they'll pay over your insured amount if your item has increased in value.

 

[fire&ice]

----------------
On 1/13/2004 7:55:16 PM glitterata wrote:

I got that form too, & shredded it. The Chubb policy already has a built-in cushion (20% I forget) that they'll pay over your insured amount if your item has increased in value. ----------------

Yeah, look into what your policy says. Maybe I look at insurance differently - it's a safety blanket. Sometimes you win - sometimes you lose. Since I tend to micro manage everything - just keep your own eye on the situation.

 

[diamondlil]

Mara,


I would not recommend automatically increasing your Chubb coverage. They send me that same form every year, and I also toss it. It seems like a scam to me. I've had Chubb for about 4 years, and if I ever get to the point where I think my diamond is worth more than I have it insured for, I'll change it then. At this point, I am more than covered since my appriasal was higher than what I actually paid, and I used the appraisal amount for my coverage.




I'm curious about the 20% cushion, Glitterata. I'll have to read my policy again too.




Diamondlil

 

[newenglandgemlab]

Hi Mara,

I've tried to respond to this for several days but just haven't had the time. I whole heartedly don't recommend 'automatic' increases on your coverage. This is good business for the insurance company but not for the consumer. Your appraiser can easily review your original appraisal to see if it needs an update at any time. Thank goodness for computers! I don'tbelieve in paying premiums on a value higher than replacement.

I have seen the Blue Nile diamonds coming into the office and they always provide an appraisal much higher than the actual purchase price along with a Chubb flier. Great marketing on their part but I feel it is unethical to do so. Cindy

 

[bacon]

I'm with them. Don't up the appraised value just for fun unless you enjoy giving extra premium money to your insurance company.
Ask your appraiser what to do. He can advise you most accurately about this.
Respectfully
JOe

 

[Mara]

Yes this is what I figured ...anyhow as I noted we only have had the ring for a year so I know the values have not changed that much in that period of time. Anyway, also figured this could be a good thread for future people who have the same question--esp with Chubb!




Thanks guys