Personal Jewelry and Furs Insurance

ISO PM 00 11–JEWELRY AND FURS FORM

(March 2024)

 

The Jewelry and Furs Form is an inland marine coverage focusing on individually owned furs and jewelry.

Purchasing separate coverage facilitates protection at amounts that best reflect a special property’s value. Valuation is typically based upon relevant documentation such as a current appraisal or sales receipt. Separate protection is important because severe coverage limitations exist in standard homeowners policies for such property.

Inland marine coverage can be purchased using this form to cover a single class of property. Coverage is also available under a personal articles floater. The latter provides protection for jewelry and furs along with several other property classes.

Related Articles:

PM 00 09 Personal Articles Standard Loss Settlement Form

HO 04 61–Scheduled Personal Property Endorsement

Caring for Jewelry and Furs

Gem and Jewelry Glossary

ANALYSIS OF POLICY

SCHEDULE

The schedule has space to indicate coverage for the following:

·         Amount of insurance and premium for all jewelry that is scheduled

·         Amount of insurance and premium for all furs that are listed as scheduled property

·         Property Scheduled

The schedule includes a reference that property, if specially marked, will be subject to the Agreed Value Loss Settlement provision in PM 00 01–Common Policy Provisions. There is also reference regarding separate indication that must be made to items that the policyholder is to store in a vault.

Related Article: Common Policy Provisions

A. Property Covered

Jewelry and Furs Form coverage applies globally to all items listed as covered property. Such property must be owned by the named insured.

 

Example: Gregory is upset over news from his insurer. His claim involving theft of expensive, jeweled cufflinks and a ring has been reduced. The ring belongs to Gregory, but he had borrowed the cufflinks from his grandfather and that part of the loss is not covered.

 

Of course, other provisions or conditions may affect coverage.

Related Court Case: Suit Limitation Waived By Insurer

1. Scheduled Jewelry and Furs

Insures against all risks of direct loss to the property (jewelry and furs) that is specifically listed in the schedule. Coverage applies only when an insurance amount and premium is shown next to a given property class.

Reference must be made to Paragraph D.1. Loss Settlement in the PM 00 01–Common Policy Provisions because that provision includes coverage limitations.

Related Article: Common Policy Provisions

2. Newly Acquired Property

a. An important coverage benefit of the jewelry and furs form is the automatic coverage for newly acquired items. The automatic limit is 25% of the amount of insurance for the class of property involved or $10,000, whichever is less.

b. The newly acquired property feature is particularly helpful since persons who schedule coverage are likely to be persons who collect higher-valued property. This coverage feature allows such persons reasonable time to remember to report their new property and, most importantly, have their coverage adjusted.

This form states that coverage ceases on a newly acquired item if it is not reported within 30 days (or at the end of the policy period if it arrives first). Another requirement is that the named insured pays all due, additional premium for the new item as of the acquisition date.

 

Example: An insured has a separate fur and jewelry policy with 2/1/21 to 2/1/22 policy dates. The policy has the following schedule:

Item

Insurance Limit

Mink coat (long)

$7,500

Rabbit coat w/hood

$400

Leather raincoat

$1,600

Lynx jacket

$5,200

Raccoon jacket

$2,400

Total

$17,100

Scenario 1: On May 5th, the insured buys an ermine-trimmed leather coat for $5,500. On May 23, the coat is stolen during a break-in at the insured’s home. If the purchase were not yet reported, the insured could recover a maximum of $4,275 on the item since that represents 25% of the current scheduled coverage.

Scenario 2: On May 5th, the insured buys an ermine-trimmed leather coat for $5,500. On June 11, the coat is stolen during a break-in at the insured’s home. If the purchase were not yet reported, the insured could not recover anything for the loss since the acquisition was not reported within 30 days or in this case, by June 5th.

Scenario 3: On May 5th, the insured buys an emerald ring for $3,200. On May 23, the ring is stolen during a break-in at the insured’s home. If the purchase were not yet reported, the insured could not recover anything. Even though the loss occurred less than 30 days from the ring’s acquisition, the insured has only scheduled FURS (and leather), so the 25% limit is inapplicable to the JEWELRY.

B. Property Not Covered

Jewelry and Furs Forms coverage is inapplicable to a number of situations. Specifically, under the following:

1. Gems that are not in jewelry mountings

2. Precious metals (silver, gold, platinum, etc.) not in common form, including bullion

3. Goldware, pewterware, platinumware and silverware, including such property plated with these metals

4. Flatware, hollowware, tea sets, trays and trophies made of materials which include precious metals (including plating)

5. Regardless the type of property, if it is contraband or is involved in any form of illegal activity, it is disqualified as covered property.

C. Perils Insured Against

The ISO Jewelry and Furs Form protects against all forms of direct, physical loss. However, it does not insure against loss or damage caused by:

1. Wear and tear, or gradual deterioration

2. Inherent vice, insects, or vermin

D. Deductible

This insurance is subject to the policy deductible that appears on the declaration page.

E. Options

The ISO Jewelry and Furs Form offers several additional coverages as options that supplement its base coverage. The following options are in effect if the policy shows that they have been selected either in the declarations or elsewhere.

1. Jewelry Pair or Set Broad Coverage

When this option is selected, the Loss To A Pair, Sets Or Parts in PM 00 01–Common Policy Provisions Form that applies to jewelry is replaced by this item which provides the following:

When loss occurs to scheduled jewelry which is a pair, set, or consists of multiple parts, the insurer has the option of paying the full, scheduled value for the complete pair, set or multiple part item; then the named insured must surrender any remaining, existing parts of the item to the insurance company.

This option lends reasonableness to the settlement process. Sometimes a loss will involve matched set property which, for all practical purposes, cannot be made complete if part of the set is lost or destroyed. Though a cash settlement is not a perfect option, it at least provides some level of compensation when property just cannot be restored or replaced.

2. Jewelry in Vault Credit

When the named insured accepts this premium credit, the following stipulations apply:

a. Specified jewelry indicated on the policy Schedule with a number mark (#) next to the item description must be stored within a vault. The vault must be located at an institution (bank or security firm) appearing in the declarations or elsewhere in the policy.

b. No coverage applies to article damage or loss when such articles are not located as stipulated. However, an exception is granted if, before removing the property, the insurance company is notified and has already been paid a premium to cover the additional exposure during the removal period.

3. Additional Person Insured – Engagement Ring, Wedding Ring Or Guard Ring Only

When this option applies, another party with a legitimate financial interest in a specified article of jewelry must be listed on the policy or in the declarations. However, that status is ONLY with regard to the identified jewelry item. The insured specifically agrees that such additional interest has no covered status regarding any other part of the policy.

Example: Tara is on her way home from work when she’s robbed. Besides her purse and necklace, the robber also takes her platinum engagement ring. The ring contained diamonds. Kevin, her fiancé, shared an appraisal for the ring 10 months earlier when they became engaged. Tara added it to her policy’s jewelry schedule for the appraised value of $6,500. Tara also listed Kevin as an additional person insured.

Scenario 1: Tara’s insurance company pays Tara $4,000 and Kevin is paid $2,500, the amount he still owed on payments.

Scenario 2: Tara’s insurance company pays Tara $6,500 and Kevin is paid nothing since, at the time of the loss, the ring had been paid for in full.