Everyone has possessions of value in their home … it’s where we display our best items! Some things are of a high monetary worth, and some simply hold a great deal of sentiment.
With a typical Homeowner’s Policy, major items in a home, including appliances, furniture and clothing, are covered in the event of a loss. There’s also a bit of coverage for other valuable items, such as jewelry, art or antiques, but the overall dollar value paid out on these valuables can be quite low – sometimes not even enough to replace the item, which can feel like a slap to the face when you hit hard times.
To avoid this from happening, many insurance companies offer another level of home item insurance, such as a “premium” or “ultra” coverage. However, even this type of policy will not pay out for extreme or rare situations. In situations where high-value items in a home fall outside the scope of even the broadest home insurance policy, a personal articles floater may be a better option.
This stand-alone coverage is typically added to the current home insurance premium or written on a stand-alone basis. It allows for extremely high-value items, such as silverware, camera equipment, jewelry, art, antiques, and rare coins have coverage by a substantially larger level of monetary protection.
How Often Should I Update You About My Valuable Articles?
When a personal articles floater is purchased, it will require a detailed list or “schedule” of the property that will be covered. Each item must have an appraised value attached to it, and some insurance companies will require proof of that appraisal. If a loss occurs the insurance company pays out the lowest of the following options: actual cash value, the amount the property could reasonably be expected to be repaired or replaced, or the amount of insurance.
What’s an Example of When I Would Need this Coverage?
Jewelry: Any article of jewelry, including silverware, plateware, pewterware, and trophies, are insurable. You may need to provide an original bill of sale or signed appraisal to have these items insured.
Furs: Any article of fur, trimmed with fur, or one that the fur is the principal value is insurable. Similar to jewelry, these items must be listed separately in the policy.
Stamp and Coin Collections: Any valuable stamp and coin collection can be covered with a personal articles floater. Insurance can be purchased on an individual item-by-item basis or the entire collection can be insured together.
Cameras: Your camera and associated gear, including filters, sunshades, and meters, are insurable with this type of coverage. Binoculars, telescopes, and projectors used in photography also qualify for coverage, while coin-operated devices and radar cameras do not. If you use camera equipment professionally you may need to pay an additional premium.
Musical Instruments: A personal articles floater can cover musical instruments, their cases, and sound equipment. If you use these items professionally then you will need an endorsement, resulting in a higher premium.
Golf and other sports equipment: Your clubs and clothing can be covered by a personal articles floater, but golf balls aren’t unless loss is suffered by fire or burglary. This coverage protects your gear if it’s in your locker while you’re playing golf.
Fine art: This category includes paintings, antique furniture, manuscripts, and rare books and glasses.
How Does this Coverage Differ from a Standard Homeowner’s Policy?
This type of insurance provides a greater range of coverage, including the ability to claim damage on the items if the homeowner accidentally breaks them or if they were damaged in a flood, earthquake or other natural disaster that a typical policy would not cover. Personal articles floater policies also cover losses to items that occur anywhere in the world as compared to a homeowner’s policy that only pays out a percentage on losses occurring away from your homestead. A Floater policy offers true “All Risk” protection. This is particularly useful for those who travel for business or pleasure and take their musical instruments, laptops, jewelry, and other valuable items with them.