Thomas

I. Factual Background

The Thomases obtained a homeowner’s insurance policy from FIE through Higashi for their Morgan Hill residence. The policy limit for the dwelling was $277,000, and the limit for personal property was $207,750. A “personal article floater endorsement,” for which the Thomases paid an additional annual premium of about $650, provided $45,935 in coverage for several specific items of jewelry. The jewelry endorsement was the result of the Thomases obtaining supplemental coverage each time they acquired another item of jewelry. An appraisal was required for each jewelry item, and the premium increased for each item. Another of the policy’s endorsements provided coverage of $200 per card and $1,000 “in the aggregate” for “sports cards.” The Thomases had a large collection of sports “memorabilia” that they stored in their garage. This collection included hockey cards, baseball cards, and football cards that Anthony Thomas (Anthony) valued at $50,000 or $60,000. Anthony testified that he also had a collection of around 8,000 “cut and polished” emeralds weighing nearly 13 pounds, most of which he stored under a piece of plywood in his attic. Although he testified that…