Personal Articles Insurance

Many people do not realize that your typical homeowners insurance policy only offers between $1,500 – $2,550 of coverage for jewelry, guns, antiques, furs, and other valuable personal property. But what if the value of your items is higher than the allotted coverage? Then it is time for a personal articles floater (also known as an inland marine policy).  With a personal articles floater (PAF), the policy can guarantee coverage for things like theft, mysterious disappearance, and breakage which are not covered on your homeowners policy. Most times an appraisal is required for these policies to show the value of the stated item.

What is a Personal Articles Floater?

Ok, let’s do a clarification of PAF, so it will become a little clearer. A Personal Articles Floater is used to insure valuable personal property that your typical homeowner’s policy does not insure due to various exclusions and/or limitations of the particular homeowner coverage. Below, I have listed a few items of personal property which you might think is covered under your homeowner’s policy, but you might require a PAF/Inland Marine policy. You will want to read and clarify this with your agent or representative, so you make sure your personal belongings are covered.

• Jewelry: Most types of personal jewelry can be included on a floater; however, jewelry is given more consideration than most other personal items due to popularity. On a general basis, any jewelry item over $1,000 in value would require an appraisal; however, some situations, policies or insurance carriers may require appraisals at a lower amount.
• Cameras: Due to the age of the digital technology (i.e. iPhones, Smart Phones, iPads, iPad Mini’s,etc.), items identified under this term usually mean or refer to motion picture recording equipment, projection machines, films, binoculars, and telescopes. It may not cover digital technology cameras as mentioned above, so check with your Dickey McCay Insurance agent for the insurance carrier specific coverage.
• Bicycles: This is not a high dollar amount, but each item must be identified and described on a sheet of paper (schedule) with an amount of insurance listed.
• Furs: All fur items such as fur coats, personal fur items consisting of fur, and garments trimmed with fur. Also, imitation fur can be included as well, but you will need to speak with your particular agent and insurance carrier regarding specific policy.
• Musical Instruments: Musical instruments that provide sound and amplifying music on a personal basis can be listed on a floater. Each piece of music or item should be identified separately and listed on a sheet of paper called a schedule. The schedule usually provides an area to list the amount of insurance coverage for each particular piece of music equipment. Again, this is usually for personal use not a business or commercial.
• Fine Arts: Fine arts can be a broad term; however, this usually includes private collections of paintings, antique furniture, rare books, glasses, and manuscripts. Fine arts are insured on a valued basis which means if a loss occurs, payment would be made for the amount insured.
• Silverware / China / Crystal: Like the Musical Instrument section, you will need to list all items on the schedule with the amount of insurance.
• Stamps / Coin Collections: Valuable coin and stamp collections can be insured by identifying each coin and/or stamp and listing them on the schedule along with amount of insurance. There is a blanket process as well for this type of collectors item. Check with your insurance agent or agency to determine the best method of personal articles floater or insurance policy to use.
• Guns: Similar to musical equipment, you will use a schedule to identify each gun and the amount of insurance.
• Golf Equipment: Golf equipment and musical equipment is similar as you will do the same. You will list items such as golf equipment and accessories that you want to insure and list them on the schedule along with the amount you want to insure them for. Again, if you have any question regarding what is covered, ask your insurance agent.

Although there are no standard floater policies, most floater policies share the following four characteristics:

• The insurance coverage can be tailored in order to insure a specific type of item or property.
• The insured can select the appropriate policy amount or limit for the items(s) or property.
• Articles Floaters are typically written on an all risk basis which means all direct physical losses to the items or personal property are covered, except for specially excluded losses (make sure you understand the exclusions).
• Most Articles Floaters cover the items or property anywhere in the world; however, fine arts are usually covered only in the United States.

Please call us today as a valuable Dickey McCay Insurance team member will be glad to answer your questions regarding personal articles floater/inland marine insurance, help you with a quote or work with you from start to finish in getting a personal articles floater policy secure to insure your personal valuables are protected.