Introduction

Property covered

Property not covered

Perils, deductible, options

Jewelry in vault credit

 Introduction

 The endorsement allows the insured to schedule particular items of jewelry and fur for specified amounts. Important in this coverage is an accurate, detailed appraisal of each item. Gemstones need to be identified by type, cut, clarity, color, and karat size, and settings must be identified by type and grade of metal. Furs need appraisals as well and should include type of fur, quality, type and style of garment, and percentage of fur on the garment. As the value of jewelry and furs changes over time, is important to advise the insured to have the appraisals regularly updated, roughly every five years unless the carrier has specific appraisal update requirements.

 Property Covered

 A. Property Covered

We cover the property insured under this policy that is owned by an “insured” while it is anywhere in the world.

1.Scheduled Jewelry And Furs

We cover scheduled articles of jewelry and furs only if an amount of insurance and premium is shown for that property in the Schedule above. The amount of insurance shown for such property is limited by Paragraph D.1. Loss Settlement in Common Policy Provisions Form PM 00 01.

2.Newly Acquired Property

We cover newly acquired jewelry and furs subject to the following:

a. The limit for this coverage is 25% of the amount of insurance for that type of property or $10,000, whichever is less; and

b. You will report to us such newly acquired property within 30 days of when you acquire it and pay an additional premium from that date.

If you fail to do so, coverage will cease automatically 30 days after you acquired the property or at the end of the policy period, whichever occurs first.

 Analysis

 Like most personal property coverages, this form covers scheduled property while it is anywhere in the world. So the insured can travel with her diamonds and the coverage follows. The property that is covered is only what is listed on the schedule unless it fits the newly acquired property provisions.

 The loss settlement conditions that apply appear in the Common Policy Provisions, PM 00 01, section D.1. The scheduled form has no settlement provisions; it is designed to identify specific property and what the agreed amounts are.

 Section D.1 of the Common Policy Provisions form states that the value scheduled is not an agreed upon amount, but that the value will be determined at the time of loss. In event of a loss, no more than the lesser of four amounts will be paid: the actual cash value of the article at the time of loss, the amount for which the article could be reasonably repaired to its condition immediately before the loss, the lesser of the amount for which the article could be reasonably replaced with one substantially similar to it, or the agreed value of the item. This allows the carrier to return the insured to her pre-loss condition at the lowest cost to the carrier but to still prove proper indemnity. It is important to make this clear to the insured; just because an item is scheduled does not mean that is what the insured will get in event a piece of jewelry is damaged or lost. Carriers routinely have access to gemstones at less than retail cost, and if an exact duplicate or substantially identical stone can be gotten at such a price, the carrier will do so.

 Because of the potential value of the property, newly acquired property is covered for a limited amount for a limited time. New property is covered for either 25 percent of the insurance for that type of property or $10,000, whichever is less. Also, such property must be reported to the carrier within thirty days of acquisition, and any additional premium must be paid. The carrier does not want to provide coverage for what could be expensive items without collecting premium for them. If the carrier is not notified, then coverage ceases at the earliest of thirty days or the end of the policy period, whichever comes first. If an insured purchases a diamond necklace on February 1 for Valentine's Day, the policy expires on February 18, and the property is lost or damaged on February 20, there is no coverage.

 Property Not Covered

 B. Property Not Covered