Home Insurance Articles

When A Personal Articles Floater Is Necessary

2010-01-05

Everyone has possessions of value in their home - some of a high monetary worth and some which simply hold a great deal of importance to the owner. With a typical home insurance policy, the major items in a home, including appliances, furniture and clothing, are covered in the event of a theft or loss. Additionally, there is typically some amount of coverage for other valuable items, such as jewelry, personal computers or antiques.

The dollar value paid out on these valuables by a home insurance policy can be quite low, however, and is often not nearly enough to cover the cost of the item. To avoid this from happening, many insurance companies offer another level of home item insurance, such as a "premium" or "ultra" coverage. However, even this type of policy will not pay out for extreme or rare situations, like a valuable being damaged by a houseguest. In situations where high-value items in a home fall outside the scope of even the broadest home insurance policy, a personal articles floater may be a viable option.

A personal articles floater is coverage typically added to the current home insurance premium, and it allows for extremely high-value items, such as silverware, camera equipment and rare coins, to be covered by a substantially larger level of monetary protection - anywhere from $5000 to $50,000. Additionally, a personal articles floater provides a greater range of coverage, including the ability to claim damage on the items if the homeowner accidentally breaks them, or if they were damaged in a flood or other natural disaster that a typical policy would not cover. This type of insurance will often come with no deductible attached, and will allow for between 30 and 90 days for the homeowner to report new property being added to the policy. This means that if valuable property is purchased and then stolen out of the home before the owner can contact their insurance company, they may still be covered even though the item was not listed on the policy. When a personal articles floater is purchased, it will require a detailed list or "schedule" of the property that will be covered. Each item must have an appraised value attached to it, and some insurance companies will require proof of that appraisal.

For most homeowners, the typical coverage provided by their home insurance, or the enhanced coverage offered, will be enough to replace any lost or stolen items. If, however, there is a possession of great value or extreme rarity in the home, a personal articles floater may be necessary to provide both security for the item and piece of mind for the homeowner.