A man lived in his house with his girlfriend at the time. Things were going so well, he bought an engagement ring, took her to Mexico for vacation, proposed in Cancun, and she said yes. He gave her the ring. She wore it the rest of the vacation, then packed it in her suitcase … but when she got home and opened up the suitcase, it was gone! The girlfriend had no HO or renters insurance because she lived with her boyfriend. The man had his own HO policy, but he hadn't gotten around to scheduling the ring.
Notable Timestamps
[ 00:15 ] - He still thinks it should be covered anyway under Coverage C for personal property. The adjuster is reviewing the policy, ISO HO3 2011 edition, to see if any coverage can be granted.
[ 01:24 ] - The team discusses whether the ring met the deductible and if not, what that means for the relationship.
[ 03:10 ] - Ownership transfers from the donor to the donee once the fiancee accepts.
[ 04:55 ] - The boyfriend probably didn't "use" the ring.
[ 05:40 ] - Coverage for personal property of others applies only when the property is on the residence premises.
[ 07:22 ] - The theft peril likely wouldn't apply in this scenario where the ring was simply missing from the luggage, without more facts.
[ 09:40 ] - A $1,500 or so special limit would apply to theft of jewelry.
[ 11:14 ] - If the ring had been scheduled, the above obstacles wouldn't apply, but the boyfriend would still need "insurable interest" in the ring. Courts would likely hold in the boyfriend's favor in such a scenario.
[ 14:37 ] - Tim provides a recap of the scenario and the points above.
Your PLRB Resources
Property FAQ: Engagement Ring Coverage - https://www.plrb.org/documents/engagement-ring-coverage/
Property Q&A: Engagement Ring Coverage – Prop. Q&A 166 - https://www.plrb.org/documents/engagement-ring-coverage-prop-qa-166/
Coverage Question: Scheduled Engagement Ring that Fiance Refuses to Return Post-Split – PCQ.2015.08.24.slc.a - https://www.plrb.org/documents/scheduled-engagement-ring-that-fiance-refuses-to-return-post-split-pcq-2015-08-24-slc-a/
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The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.
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