How do annual premium adjustments work for All-Risk Items?

Once a year, on your policy Anniversary Date, your Compensation Limit for Specified Items gets an automatic adjustment. The increase is tied to inflation, so your cover keeps pace with what it would cost to replace your stuff today. Because the limit goes up, your premium usually adjusts too. This helps protect you against underinsurance, but it’s still on you to make sure the numbers reflect the real value of your items.