A homeowner owns a diamond engagement ring appraised at $22,000. Her HO-3 policy has a $1,500 sublimit on jewelry theft. She wants full replacement cost coverage including mysterious disappearance. Which approach and key feature best accomplish this?

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Schedule it on a Personal Articles Floater, which covers it open-peril, mysterious disappearance included — A HO-3 Coverage C jewelry sublimit (typically $1,500 for theft) persists regardless of the overall Coverage C limit — increasing Coverage C to $50,000 does not remove the jewelry sublimit. A Personal Articles Floater (PAF), an inland marine policy, schedules each valuable item individually at its appraised or agreed value. PAF coverage is open-peril, covering mysterious disappearance (the ring falls off a hand and is lost) — which the HO theft peril does not cover. PAF policies typically carry no deductible on scheduled items. Distractor (a) confuses blanket and scheduled; distractor (d) is the most common misunderstanding. See FL Outline §I.D.

A homeowner owns a diamond engagement ring appraised at $22,000. Her HO-3 policy has a $1,500 sublimit on jewelry theft. She wants full replacement cost coverage including mysterious disappearance. Which approach and key feature best accomplish this?

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