You are considering a homeowner's insurance policy. The policy includes damage to your home and its contents but limits the coverage for losses ofjewelry to a total value of $1,000. In addition, the policy has a $500 deductible. For an additional amount, you can increase the coverage on yourjewelry, subject to an appraisal. You can also pay a higher premium to reduce the deductible to $200.

Explain the purpose of these contractual provisions from the insurer's point of view.