What is a Personal Article Floater?

Homeowners and renters insurance policies often provide a sense of financial security, but they may not fully protect all your personal property. These standard policies typically come with coverage limits that might fall short for valuable, rare, or frequently relocated items. This is where a personal article floater becomes a valuable addition to your insurance plan.

What Is a Personal Article Floater?

A personal article floater is a specialized form of insurance, categorized as inland marine insurance, designed to protect your high-value or easily transportable belongings. As the name suggests, the coverage "floats" with the insured items, ensuring they are protected wherever they go.

This type of policy can either act as a standalone policy or as an endorsement of your existing homeowners or renters insurance. Unlike standard policies, a personal article floater typically provides "open peril" coverage, insuring your belongings against all risks except those specifically excluded in the policy.

What Does a Personal Article Floater Cover?

A personal article floater is highly customizable and can protect a broad range of personal belongings, particularly those with significant value or sentimental importance. Commonly covered items include:

• Jewelry and Luxury Handbags: High-value accessories such as engagement rings, designer bags, and heirloom jewelry.
• Furs and Antiques: Rare or collectible items with unique historical or financial significance.
• Silverware, Glassware, and China: Fine dining items that are valuable and often irreplaceable.
• Cameras, Computers, and Electronics: High-tech gadgets and professional equipment.
• Coin and Stamp Collections: Rare collectibles with significant market or intrinsic value.
• Sports Memorabilia: Autographed items, collectible cards, and other prized possessions.

This type of insurance ensures these items are covered against risks like theft, accidental damage, or loss that standard policies may exclude.

Benefits of Personal Article Floaters

Personal article floaters provide enhanced protection that goes beyond the limits and exclusions of homeowners' or renters' insurance. Here are a few notable advantages:

1. Worldwide Coverage: The protection follows your items, whether they're at home, in transit, or abroad.
2. Open Peril Coverage: Your items are insured against virtually all risks unless explicitly stated otherwise in the policy.
3. Flexible Customization: Tailor your policy to include only the items you want to protect.

Types of Settlement Options for Personal Article Floaters

Personal article floater policies typically offer two main types of settlement options in the event of a covered loss:

1. Replacement Cost Settlement

This option provides coverage to replace the insured item with a similar kind or quality. However, depending on the replacement cost, the reimbursement amount may be lower than the value listed in the policy.

2. Agreed Value Settlement

With this option, the insurer pays the predetermined amount listed in the policy for the item. This settlement type often requires a higher premium but ensures full-value reimbursement for your valuable items.

Why Do You Need a Personal Article Floater?

A personal article floater is an essential safety net for individuals with high monetary or sentimental value items. It bridges the gap left by standard insurance policies and ensures comprehensive coverage for:

• Items that exceed the coverage limits of your homeowners or renters insurance.
• Belongings that are frequently moved or transported, increase the risk of loss or damage.
• Unique or irreplaceable possessions that require specific coverage terms.

How to Obtain a Personal Article Floater

Acquiring a personal article floater is a straightforward process. Most insurers offer these policies either as a standalone product or as an endorsement of your existing coverage. You’ll typically need to provide:

• A detailed description of the items you wish to insure.
• Appraisals or receipts to establish their value.

Some insurers may require additional documentation or inspections, especially for high-value items.

Conclusion

Protecting your most treasured possessions with a personal article floater ensures peace of mind and financial security. Whether it’s a family heirloom, a prized collection, or valuable electronics, this specialized insurance policy offers unmatched coverage that standard insurance simply can’t provide.

If you’re unsure about your current coverage or want to explore how a personal article floater can enhance your protection, contact us today. Our experts are here to guide you in finding the best policy tailored to your needs; Just give us a call at 909.466.7876!

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