Not sure why they rejected you, but I also have an agreed value through hagerty and it costs me a fraction of what I was paying to liberty mutual for lesser coverage.
You're not charging enough. Charge at least $60 each. I bet you could get $75 without a problem. We're talking hand made rugs here, and you're charging less than mass made overseas junk.
They look rad, and if you charge a premium, you can upgrade your equipment over time and not just break even.