Amex (Hilton card) denied my claim as defective items are not covered. I appealed but no cigar. My wife found the back of an earring broken in 2 pieces stuck in the back of her ear, but the stud in the front piece was gone. The purchased occurred just 4 days before.
Lost items are also not covered. I remember a purchase protection tv ad where a newly purchased hat got blown away into a river, I wonder if that would be denied as well.