Personal Article Floaters- How to Insure your Valuables

Hello! I hope you all enjoyed your Father's Day. For those who do not celebrate Father's Day, I hope you had a safe and relaxing weekend. Yesterday was the first day I haven't released an installment since this newsletter started. But I think breaks are okay on holidays. We went out to eat last night as a family, and one of our conversations was about summer travel. My mom just bought a new necklace and wanted to know what would happen if it was damaged or lost while she was away. Well, that got me to thinking. Today's newsletter is about Personal Article Floaters—a specialized form of insurance designed to offer comprehensive coverage for our most treasured items.

What is a Personal Article Floater?

A Personal Article Floater (Inland Marine) is a versatile insurance policy that combines all your individual floaters into a single policy form. It offers an elevated level of coverage compared to the standard homeowner's policy, particularly for high-value personal property.

Coverage Details

Most Inland Marine insurance for specific forms of personal property is included in homeowners insurance through a scheduled property endorsement. The coverage provided is generally the same whether it's added as an endorsement to your homeowner's policy or issued as a separate Inland Marine policy. An Inland Marine policy includes a Declarations page where you can specify the types of property to be covered and the amount of insurance for each. You can also list specific items with separate insurance amounts, allowing for tailored protection for each valuable item. Although standard homeowners policies cover personal valuables, they may fall short when it comes to high-value possessions due to coverage limitations and exclusions.

Types of Covered Property

The Personal Article Floater is designed to cover a wide range of valuable items, including:

• Jewelry
• Furs
• Cameras
• Musical instruments
• Silverware
• Golfer's equipment
• Fine arts (e.g., paintings, etchings, valuable rugs)
• Stamp or coin collections
• Trading cards

Coverage Features

1. Worldwide Protection: Coverage under a Personal Article Floater is global, ensuring your items are protected no matter where you are.
2. Open Perils Clause: The policy provides broad coverage, protecting against all risks except those explicitly excluded, such as wear and tear, deterioration, inherent vice, and loss caused by insects or vermin.
3. Valuation Options: You can choose between Actual Cash Value (ACV), the cost to repair or replace, or a specified coverage limit. Alternatively, agreed value coverage can be selected, offering predetermined reimbursement amounts.
4. No Deductibles: Unlike many other insurance policies, losses under a Personal Article Floater are not subject to deductibles, ensuring full reimbursement for covered losses.
5. Automatic Coverage for Newly Acquired Items: For jewelry, up to 25% of the coverage limit (not exceeding $10,000) applies for 30 days after acquiring new property of the same class, providing immediate protection for new purchases.

Special Considerations

• Musical Instruments: Professional use is excluded under the basic form, but an endorsement is available to extend coverage for professional musicians.
• Golfer's Equipment: A single amount of coverage applies to all items, with golf balls covered only against fire or burglary involving forcible entry.
• Fine Arts: Automatically includes valued coverage but does not apply to property on exhibition away from the insured premises.

Blanket vs. Scheduled Coverage

Choosing between blanket and scheduled coverage depends on your needs:

• Blanket Coverage offers a set limit for a class of property with a per-item sub-limit. It is ideal for those with multiple valuable items where none individually exceed the per-item limit.
• Scheduled Coverage: This type of coverage requires an itemized list and documentation of values. It is tailored and often more expensive. Each item is insured separately, making it perfect for high-value individual items.

For example, if you have jewelry worth a total of $10,000 but no single piece exceeds $1,500, blanket coverage might be sufficient. However, for high-value individual items, scheduled coverage ensures each piece is adequately insured.

Why Consider a Personal Article Floater?

While standard homeowners policies cover everyday items like appliances, furniture, and clothing, they often fall short for high-value items due to coverage limits and exclusions. A Personal Article Floater fills this gap, providing the comprehensive protection your valuable possessions deserve.

If you have any questions or would like to discuss how a Personal Article Floater can benefit you, please don't hesitate to reach out. It's summertime and a lot of our favorite, and the last thing we need is stress in our lives. Make sure your valuable items are protected and your mind at ease. Click the link in my bio to request my services. If you still need to, subscribe to my newsletter for everything personal lines insurance.