Skyrocketing Collectibles Insurance Rates

[Mr. Zipper]

Has anyone else noticed how the Collectibles Insurance Agency premiums are going through the roof?

 

Just got the bill for the next year's premium and it's $246 for $40K in coverage.

 

The same coverage was $172 last year.

 

When I first bought a policy (4 years ago I think), the premium was around $130.

 

So, essentially, it has doubled in 4 years.

 

(Although, I now see a new charge on this year's bill which is a $45 "policy fee." What the heck is this?)

 

From what I can tell, it's the same insurer underwriting the policies, so claims must be VERY high to warrant this type of increase. Has anyone ever filed a claim with C.I.A.?

[Comicdey]

maybe the water in CA and New Orleans has finally caught up with insurers.

[Scrooge]

(Although, I now see a new charge on this year's bill which is a $45 "policy fee." What the heck is this?)

 

Yeah, that's a big Yikes for my level of coverage compared to last year. I still have to call them as I want to change my coverage limit but I'll be sure to talk to them about that "fee".

[action1kid]

I got exactly a 15 % increase this year. Ill only be insuring my best stuff in the future to keep costs down.

[Pirate]

that basically eats up an appreciation the books get

[Anfield Fox]

that basically eats up an appreciation the books get

 

i'll always appreciate kid's action 1

[marvelcollector]

Yes, my "policy fee" is $55..

Why don't they call it what it really is?...Excessive profit fee...

 

These policies are still underwritten by the same Insurer. It's hard to justify such an increase; collectibles haven't had a widespread claim pandemic....

 

As I understand it there is a new owner of the C.I.A. Aparently they were not satisfied with the previous profit margin....

[action1kid]

Where all in the assigned risk pool !

[benz]

Has anyone else noticed how the Collectibles Insurance Agency premiums are going through the roof?

 

Just got the bill for the next year's premium and it's $246 for $40K in coverage.

 

The same coverage was $172 last year.

 

When I first bought a policy (4 years ago I think), the premium was around $130.

 

So, essentially, it has doubled in 4 years.

 

(Although, I now see a new charge on this year's bill which is a $45 "policy fee." What the heck is this?)

 

From what I can tell, it's the same insurer underwriting the policies, so claims must be VERY high to warrant this type of increase. Has anyone ever filed a claim with C.I.A.?

 

$40k books....hmm, where do you live?

[RCComix]

I was waiting for a post on this subject.

 

My experience was very similar. I had decreased the coverage amount last year and was amazed to see the $45.00 policy fee!! $247.00 for $45,000 in coverage as opposed to $167.00 or so last year.

 

Does anyone know if collectible insurance of this type is offered elsewhere? If the trend continues, I will have to consider a big safe, or self-insurance.

 

Russ

[the blob]

We pay like $500 a year for my wife's $20K engagement ring. Of course, she's out on the street wearing the darn thing and you won't be out with your comics (or all of them at least). That $500/year defintely paid off when she wacked the darn thing into the pole on the subway and the diamond came out of its prongs and got lost. I think I would have slit my wrists if that was uninsured.

 

As for comics, I suspect whoever mentioned flooding/etc. is right. People store these things in basements and the insurer may have been hit with a record # of claims.

[sterlingcomics]

Russ,

 

Watch out---some safes have been known to harm comics--even in slabs. There's a thread on it that was posted to the top.

[shadroch]

Doesn't CIA up your coverage 1% a month?Seems I recall reading that. So,if you start out with 40,000 in coverage,the next year your bill will be for about 48,000 and so forth. After four years,your coverage will have almost doubled.

[Mr. Zipper]

$40k books....hmm, where do you live?

 

Hey, I'm a small fry around here compared to most. Go pick on them!

 

[Mr. Zipper]

Doesn't CIA up your coverage 1% a month?Seems I recall reading that. So,if you start out with 40,000 in coverage,the next year your bill will be for about 48,000 and so forth. After four years,your coverage will have almost doubled.

 

You are correct.

 

BUT, because I have sold some stuff, I keep knocking down the increase and going back to the original coverage limits. So the premium increases I stated were all based on the original coverage amount of $40K.

 

My God, I don't even want to know what the premium would be if I went along with the 1% monthly limit increase.

 

The cover letter is signed by the old owner W Danforth Walker, so the business doesn't appear to have changed hands.

[Mr. Zipper]

I got exactly a 15 % increase this year. Ill only be insuring my best stuff in the future to keep costs down.

 

I might do the same. If there was a TOTAL loss, would I repurchase all of the long boxes of copper and moderns or would I just replace my very best stuff anyway?

 

[underthebigw]

Doesn't CIA up your coverage 1% a month?Seems I recall reading that. So,if you start out with 40,000 in coverage,the next year your bill will be for about 48,000 and so forth. After four years,your coverage will have almost doubled.

 

 

CIA does do this, but you can ask them to remove it if you feel it doesn't match the increase your collection's value.

 

In addition, they pulled some total cr*p with me. In addition to the rate increase, they tried to charge me an additional underwriting fee of $50 because, they claimed, they don't offer a policy in MA, so had to farm it out. This has never been an issue before, and I suspect they are simply trying to recoup a distinct expense that they've always had.

 

I pitched a fit and threatened to cancel my policy, and they offered to remove it for this year only. I recommend anyone else who's hit with this do the same.so they get the message.

[shadroch]

Just pretend you are in Brooklyn,and handle it the old fashioned way.

Make sure you file enough claims each year to pay for your coverage.

[Mr. Zipper]

I just spoke with a representative at the C.I.A.

 

* There is a new ownership. The new ownership has instituted the "Policy Fees" which are basically the broker's administrative fee. The prior owners had the option to charge the Policy Fee, but they choose not to.

 

* The rate spike is due to across the board insurance premium increases at the carrier, that is, the carrier is making up for their Katrina payouts. Hopefully, this rate of increase will not become an ongoing trend.

 

* According to the rep, claims are not high and the price increase was not due to increased claims experience.

 

I told them I wasn't happy and reduced the amount of my coverage, thus reducing the amount of the premium from which they get commission. Further, I told her that if this type of increase happens again I will be looking for alternatives.

 

[Wally's Comics]

 

Insurance is the new legalized mafia, I tell you!