Upon graduating from college, your parents host a graduation party in celebration for you at their house.

50 ofyour friends attend along with several family members and neighbors. At the end of the party everyone is departing the house. As the last guests filter out the front door, you thank them for attending and close the door.

3 minutes later you hear a loud knock on the front door. You open the door and see that one of your trusted friends is standing there and is very upset. She tells you that after getting into her car she realized her $9,000 Rolex watch was missing. Immediately, you, your friend and your family members conduct a search of the house, front yard and your friend's pocketbook, coat pockets and vehicle to no avail - the watch cannot be located.

Questions:

1) Should you call the police?

2) Is this apparent loss covered by the parents' home owner's insurance?

3) If not, what insurance might cover this loss?

4) What should happen if your friend receives a replacement watch via an insurance claim then, 3 months later, your mother calls you to say she discovered the lost watch on the ground while pruning a front lawn plant?