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There’s a widespread misconception that homeowners or renters insurance policies offer comprehensive coverage for all personal belongings. However, these policies often impose financial limits on coverage, leaving high-value items vulnerable to being underinsured. For items of significant value, rarity, or frequent relocation, a personal article floater is worth considering.

What is a Personal Article Floater?

A personal article floater is a specialized type of inland marine insurance designed to protect movable personal property. Unlike standard insurance policies, such as homeowners insurance, a personal article floater provides flexible coverage that “floats” with valuable items, supplementing existing coverage or standing as a standalone policy.

Typically, personal article floaters offer “open peril” coverage, meaning items are covered unless specifically excluded from the policy.

Coverage Under a Personal Article Floater

Personal article floaters can safeguard a wide array of valuable personal property, including jewelry, luxury handbags, antiques, electronics, and sports memorabilia, among others.

Settlement Options

There are two common settlement options available with personal article floater insurance policies:

  1. Replacement Cost Settlement: This option typically provides coverage to replace the item with one of similar kind or quality. However, the replacement amount may be lower than the item’s listed value on the policy.
  2. Agreed Value Settlement: Under this settlement type, the policy pays out the amount listed for the item on the policy, offering more certainty in reimbursement. However, this option may require an additional premium.

For More Information

If you have inquiries regarding your coverage or wish to explore personal article floaters further, feel free to reach out to Knauf Maxwell Insurance Services today. We’re here to provide assistance and help you make informed insurance decisions.