1. Forms
2. PM
3. PM-00-11

What the form is

The ISO Form PM 00 11, Jewelry and Furs Form, is a personal inland marine policy form used to provide specific, scheduled coverage for valuable jewelry and furs. Standard homeowners policies often have strict, low limits for theft of jewelry and furs, making this separate form crucial for individuals owning items that exceed those standard limits. This form allows for items to be insured for their appraised value, offering more comprehensive protection against various risks of direct physical loss, often on an all-risks basis, subject to policy exclusions. It is designed to be used in conjunction with the PM 00 01 Common Policy Provisions form.

Classes of business it applies to

This form applies to personal lines customers who own valuable jewelry and furs that require coverage beyond what a standard homeowners or renters policy provides. This includes:

• Individuals with high-value engagement rings, necklaces, bracelets, earrings, and other jewelry items.
• Owners of expensive fur coats, stoles, and other fur garments.
• Collectors of such valuable personal property.

Real-world example: A person receives a diamond engagement ring appraised at $15,000. Their homeowners policy might only cover $1,500 for theft of jewelry. The PM 00 11 form would allow them to schedule the ring for its full appraised value.

Special considerations

• Valuation: Items are typically insured on an "agreed value" or "actual cash value" basis, often requiring a current appraisal or bill of sale at the time of policy inception. If "agreed value" is selected (and indicated on the schedule, often with an asterisk), that agreed amount is paid in the event of a covered total loss.
• Newly Acquired Property: The form often includes a provision for automatic coverage for newly acquired jewelry and furs for a limited time (e.g., 30 days) and up to a certain percentage of the total scheduled amount, allowing the insured time to report the new items to the insurer. The insured must pay any additional premium due from the acquisition date.
• Property Stored in a Vault: If items are scheduled with a premium discount for being stored in a bank vault or similar secure institution, coverage may be voided if the items are removed from the vault without prior notification to the insurer and payment of any additional premium required.
• Pairs and Sets: For scheduled jewelry that is part of a pair or set, if the "Jewelry Pair or Set Broad Coverage" option is selected, the insurer may have the option to pay the full scheduled value for the entire set if one part is lost, with the insured then surrendering the remaining part(s) to the insurer. This replaces the standard loss settlement for pairs and sets found in the PM 00 01.

Real-world example: An insured has a pair of diamond earrings scheduled for $5,000. They lose one earring. If the broad pair and set coverage is in effect, the insurer might pay the full $5,000, and the insured would give the remaining earring to the insurer.

Key information for agents and underwriters

• Risk Assessment: Underwriters will carefully consider the values being insured, the lifestyle of the insured, previous loss history, and security measures in place (e.g., home safes, alarm systems, items stored in bank vaults). High concentrations of value in a single location can be a concern.
• Appraisals: Current, detailed appraisals from reputable jewelers are essential for establishing accurate values and ensuring items are adequately described. Appraisals should typically be updated every 3-5 years due to market fluctuations.
• Coverage Gaps: Agents should explain the limitations of homeowners policies for jewelry and furs and the benefits of scheduling these items on the PM 00 11. Ensure clients understand the difference between "actual cash value" and "agreed value" loss settlements if options are available.
• Exclusions: While often an "all-risks" coverage, common exclusions may include wear and tear, gradual deterioration, insect/vermin damage, and intentional loss. Agents should review these with the insured.
• Pricing: Premiums will be based on the value of the items, the type of property (jewelry often has higher rates than furs), the geographic territory, and any protective safeguards or discounts applied (like for vault storage).