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In an agreed value insurance plan I understand that the number X is the amount that will be paid out upon loss. However I have two questions in regard to this:

  1. Upon renewing my policy yearly am I able to negotiate its value above the number printed on the receipt due to inflation?
  2. If I'm unable to do such a negotiation I would expect my premium to go down yearly, correct?

This is in regards to insurance on jewelry in addition to a renters policy. I've read my policy documents and I don't see these particular issues addressed.

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    I would expect your premium to go up with inflation if the sum insured is uprated for inflation, and stay the same otherwise (other things being equal, which they may not be).
    – Ganesh Sittampalam ♦
    Commented Nov 15, 2014 at 18:47

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This should be covered in the text of your policy. Either an inflation adjustment is built into it, or not. If it is, your premiums will go up in parallel with the value insured. If not, the policy will lose real value until/unless you explicitly adjust it upward by submitting a new appraisal and having them adjust the insurance coverage and premium rate. Read your policy, and if you can't find the answer in there, ask your agent and/or the insurance company.

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