Understanding Personal Articles Floater Insurance: A Comprehensive Guide

Understanding Personal Articles Floater Insurance: A Comprehensive Guide

April 10, 2024

Many individuals are unaware that standard homeowners insurance policies typically provide only $1,500 – $2,550 of coverage for valuables like jewelry, firearms, antiques, furs, and other personal property. But what happens if the value of your possessions exceeds the provided coverage limit? That's when a personal articles floater, also known as an inland marine policy, becomes necessary. A Personal Articles Floater (PAF) policy can assure coverage for situations like theft, unexplained loss, and damage, which are typically not covered under your homeowners policy. Usually, an appraisal is required for these policies to ascertain the value of the item in question.

What Exactly is a Personal Articles Floater?

Let's review Personal Article Floater, also known as Inland Marine Insurance, for a better understanding. A Personal Articles Floater is a type of insurance used to protect valuable personal property that your standard homeowner’s policy may not cover due to various exclusions and/or limitations. Below are some examples of personal property that you might assume are covered under your homeowner’s policy, but in reality, may require a PAF or Inland Marine policy. It's crucial to discuss this with your agent or representative to ensure your belongings are adequately covered.

    • Jewelry: Most personal jewelry can be covered under a floater, but due to its popularity, it often requires more scrutiny. Generally, any jewelry item valued over $1,000 would need an appraisal, although some policies or insurance carriers may require appraisals for less valuable items.
    • Cameras: This term typically refers to motion picture recording equipment, projection machines, films, binoculars, and telescopes. It might not cover digital technology cameras, so it's essential to check with your insurance agent for specific coverage details.
    • Bicycles: While not high-value items, each bicycle must be individually identified and described, with an insurance amount listed.
    • Furs: This category includes fur coats, fur-trimmed garments, and other personal fur items. Imitation fur can also be covered, but you should consult with your agent regarding specific policy details.
    • Musical Instruments: Personal musical instruments can be listed on a floater, with each item individually identified and listed along with its insurance coverage amount.
    • Fine Arts: This category usually includes private collections of paintings, antique furniture, rare books, glasses, and manuscripts. Fine arts are insured on a valued basis, meaning if a loss occurs, payment would be made for the insured amount.
    • Silverware / China / Crystal: These items will need to be individually listed with their respective insurance amounts.
    • Stamp / Coin Collections: Valuable coin and stamp collections can be insured by individually identifying each item and listing them along with their insurance amount.
    • Firearms: Like musical instruments, each firearm should be individually identified and listed with its insurance amount.
    • Golf Equipment: Golf equipment should be individually listed with the insurance amount you wish to insure them for.

    Choosing the Right Coverage

    Choosing the right coverage depends on the value of the items you want to insure and the risks they are exposed to. An independent insurance agency like John Andrade Insurance can provide expert guidance and customized solutions to ensure your valuable items are adequately protected.