What Type of Property Does a Personal Floaters Policy Cover?

A personal floater policy offers specialized insurance designed to protect valuable personal items that may not be adequately covered by standard homeowners or renters insurance. This type of policy serves as a safeguard for possessions that hold significant financial or sentimental value. Its purpose is to provide broader and higher coverage for specific items, ensuring they are protected against a wider range of risks than a typical policy allows.

Understanding Personal Floater Policies

Standard homeowners or renters insurance policies cover personal belongings but often have limitations for high-value items. They may impose sub-limits, such as $1,500 or $2,500, for categories like jewelry or firearms. This means reimbursement from a standard policy might be insufficient to replace a valuable item. A personal floater policy addresses these limitations by providing enhanced protection for such unique and expensive possessions.

A personal floater policy, also known as a Personal Articles Floater (PAF) or Inland Marine policy, can be a standalone policy or an endorsement to an existing homeowners or renters insurance. It is called a “floater” because coverage “travels” with the insured item, protecting it even when away from home. This specialized coverage protects against a wider array of perils, often with no deductible, meaning the policyholder receives the full agreed-upon amount in a covered loss.

Common Categories of Covered Property

Personal floater policies cover a diverse range of movable property. Jewelry, including engagement rings, necklaces, bracelets, and luxury watches, is a frequently insured category, as its value often exceeds standard policy limits.

Fine arts, encompassing paintings, sculptures, antiques, and rare manuscripts, are another category for floater policies. These pieces require specialized coverage that accounts for their appraised worth, especially given their potential for appreciation. Collectibles, such as stamp and coin collections, sports memorabilia, comic books, and rare wine collections, are also covered due to their unique value.

Furs, including coats and stoles, are often listed due to their high value and susceptibility to theft. Musical instruments, from guitars and pianos to violins and specialized sound equipment, can be insured for their full replacement cost. Cameras and professional photographic equipment, including lenses and specialized bodies, are also covered.

Other valuable items include high-end sports equipment, such as specialized golf clubs or high-performance bicycles. Silverware, china, and crystal sets, often heirlooms, can also be scheduled. Firearms and luxury handbags are additional examples of high-value personal property that benefit from specific insurance.

Specific Coverage Considerations

Personal floater policies offer “scheduled” or “blanket” coverage. Scheduled coverage involves individually listing each valuable item on the policy with its specific appraised value. This provides precise protection.

Blanket coverage covers a category of items up to a total aggregate limit, often with a per-item sub-limit, without requiring each item to be individually listed or appraised. For instance, a blanket policy might cover a jewelry collection up to $30,000, with a maximum payout of $10,000 per piece. This option suits collections where individual items are not exceedingly valuable but the collection as a whole holds significant worth.

Obtaining a professional appraisal is a step in securing a personal floater policy, especially for scheduled items. Appraisals establish the current market value, which determines the insured value. This documentation also serves as proof of ownership and the item’s condition prior to any loss. Appraisals are recommended every one to three years for items that may fluctuate in value, such as fine art or rare collectibles.

These policies offer “all-risk” or “open peril” coverage, meaning they protect against all causes of loss unless specifically excluded. This differs from standard homeowners policies, which often cover only “named perils” like fire or theft. Common exclusions from all-risk coverage include wear and tear, deterioration, insects, vermin, war, and nuclear hazards. Many personal floater policies also provide worldwide coverage, though some categories like fine arts may have domestic-only coverage.

Obtaining a Personal Floater Policy

To acquire a personal floater policy, contact an insurance provider or a qualified insurance agent. They can help determine the most suitable coverage options for your valuable possessions. This policy can be added as an endorsement to an existing homeowners or renters policy, or some insurers offer standalone policies.

You will need to provide specific documentation for the items you wish to insure. For high-value items, professional appraisals are required to establish their current market value, which directly impacts the coverage amount. These appraisals can range in cost, generally from $200 to over $1,000 per item or for a collection, depending on the complexity and scope of the valuation.

In addition to appraisals, purchase receipts, certificates of authenticity, and detailed photographs of the items are often helpful and sometimes required. These documents provide essential information to the insurer for accurate valuation and claim processing. After submitting the necessary documentation, the insurer will review the information and provide a quote for the premium. Upon acceptance and payment, the policy is issued.