Floater insurance is a type of inland marine personal lines insurance policy that covers movable property and provides additional coverage over what normal insurance policies provide. The term “floater” means that the policy “floats” or travels with the items of value.
A personal articles floater is exactly what is sounds like: an floater insurance policy that provides coverage for the policyholder’s personal articles. While it is stand-alone coverage, it is typically added to the policyholder’s home insurance premium. In a typical home insurance policy, common personal items such as appliances, furniture and clothing are covered in the event of a theft or loss. Sometimes, other valuable items such as jewelry, personal computers or antiques can be included in this coverage, but the value paid out on a loss may not be enough to cover the cost of a replacement.
Some insurance companies offer “premium” or “ultra” home insurance coverage for high-value homes and belongings, but even this increased coverage has certain faults and exclusions that can leave significant gaps in coverage. Items that are “priceless” in nature require a higher level of coverage than a home insurance policy can provide. This is where personal articles floaters proves itself as a very valuable type of insurance policy.
A personal articles floater policy allows for rare and high-value items, such as furs, priceless artwork, designer jewelry, cameras and equipment, musical instruments, silverware and stamp/coin collections to be covered by a substantially larger level of monetary protection, which can range anywhere from $5000 to $50,000 or more.
When purchasing a personal articles floater, the policyholder will be required to submit detailed information about each covered item, which is called a “schedule.” The scheduled personal property must have an appraised value attached to each item, and the owner may need to provide proof of each appraisal either upon purchasing the policy or later on during a claim. Floaters are typically written as all-risk, which means all direct physical losses to are automatically covered, except for specifically named exclusions.
There is usually no deductible attached to a floater, and the owner is often given between 30 and 90 days to schedule any new high-value property they have obtained. This means that newly-purchased valuables can still be covered if a loss occurred prior to them being added to the policy. When a loss does occur, the insurance company will pay out based on which option is the lowest: actual cash value, the amount the property could reasonably be expected to be repaired or replaced for or the amount of insurance coverage taken out for that item.
Personal articles floaters are an ideal coverage add-on for high-value homeowners, because not only do they cover rare and expensive items inside the home, but coverage can follow the owner on vacation almost anywhere in the world. Most personal articles floaters cover the scheduled property worldwide, however, fine arts coverage is usually limited to only the United States, so it’s important to make that distinction when providing this coverage to your clients.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.