Insurance question

[upsidedownbelt]

Wanted you’re thoughts on this.

I just got off the phone with USAA and I wanted to bump up the value of my Hulk since prices have been going up recently. Last thing I want to do is lose it and then have to kick in more money just to replace it. USAA let me bump up the value, but also said I should get a new appraisal. I asked why and they said it will make it easier at the time of loss to get the full amount I have it insured for. My question is since they would probably have a hard time just replacing the watch and would probably just write me a check, will they pay the amount I have it insured for, or go off the last appraised value? Are people really asking for new appraisals every time prices go up or demand raises prices up? Insurance companies will gladly let you insure it for more, but in the event of loss will they really pay you current fair market value for the piece without having a current appraisal on hand?

[WhiskyVerb]

I'm not sure hpw to answer, however I will tell you an experience with USAA regarding theft. Like you, I keep a PAF (Personal Articles Floater) on my expensive watches and camera gear.

I had a bike and some camera gear stolen from my car. The Bike was 11 years old and covered by renters insurance, the lens was also an old AIS Nikon Manual Focus Prime lens.

They would give me a check for the "depreciated value," but if I replaced it they would pay in full for new. So, I bought a new bike which was remarkably a major price difference in the 11 years. I paid $900 in 1999 for the bike that was stolen. By 2010 the equivalent bike was $2500. I bought a $2750 bike and they wrote me a check for $2500. Same with the camera lens. I bought a new lens (covered by PAF) and they paid in full. If you have the bill of sale and have replacement value, they will probably reimburse you for new. I don't know how it will work with AD's having zero stock and long waits for your watch. I doubt they would pay you over AD MSRP when you can only get new from a gray market for over AD MSRP. But Having USAA over 32 years, I can say they have ALWAYS taken care of me when I make a claim.

[tyler1980]

Originally Posted by upsidedownbelt

Wanted you’re thoughts on this.

I just got off the phone with USAA and I wanted to bump up the value of my Hulk since prices have been going up recently. Last thing I want to do is lose it and then have to kick in more money just to replace it. USAA let me bump up the value, but also said I should get a new appraisal. I asked why and they said it will make it easier at the time of loss to get the full amount I have it insured for. My question is since they would probably have a hard time just replacing the watch and would probably just write me a check, will they pay the amount I have it insured for, or go off the last appraised value? Are people really asking for new appraisals every time prices go up or demand raises prices up? Insurance companies will gladly let you insure it for more, but in the event of loss will they really pay you current fair market value for the piece without having a current appraisal on hand?

I don't get new appraisals every time values go up, but to change the insurance value they do want supporting documents. I use USAA and they are very good and never even need an appraisal initially for any watch unless its over 30K USD.

At the end of the day, i use insurance to cover my out of pocket cost (what i actually paid). If i have a loss and values go up sure i will have to pay more to replace but in my view i prefer to insure the cash i am out, not the retail price of the watch and that number is static. Personal preference but thats why i generally dont update the "new replacement cost" every time there is an increase in retail prices.

They pay out whatever amount your policy says and what your premium is based on.