Personal Articles: Protect Your Valuable Property

Your homeowners policy may not cover the full value of each item.

Homeowner insurance isn’t just for the structure of your house. It also provides protection for most of your personal possessions. However, special valuables and collectibles may require additional protection. This coverage, often called a personal articles floater, can provide coverage beyond your standard policy.  Let's first understand some important information about your current home insurance policy. Then we can discuss how a personal articles floater differs.

What's in Your Homeowner Policy?

Offered within a standard homeowner policy is Coverage C, better known as personal property coverage. It protects the contents of your home and other property owned by you ranging from your television to the clothes in your closet. Personal property coverage amounts are a percentage of the home’s insured value, typically around 75%. See your policy language for your specific situation.

Most homeowners have enough insurance for their basic belongings. However, what about those who own valuable items such as fine art, jewelry, or silverware? Do they have enough coverage for these items?

Some collectors believe their personal property coverage will be enough to protect their valuables. However, they may be underinsured. Consider, the standard homeowner policy typically:

• insures these types of items only up to a maximum dollar amount, or not at all.
• requires a deductible – the amount you must pay for an insured loss before insurance pays the remainder.
• applies exclusions or limitations for such things as breakage, earthquakes, flood or while in transit.
• settles losses on an actual cash value basis, which is the depreciated value of the item.

For these reasons, many collectors prefer to purchase a personal articles floater. This is a separate policy not connected with your existing homeowner policy.

How is the Personal Articles Floater Different?

Most personal articles floaters, or policies, can provide broad, all-risk coverage. This means that there is coverage for a loss unless specifically excluded.

Some additional benefits typically include:

• No deductible is required, although you may be able to reduce your premium if you choose a deductible.
• Most major dangers to your collection are covered, including such things as: accidental damage, theft, fire, mysterious disappearance, breakage, earthquake, flood and even terrorism.
• Loss settlements are based on an agreed value at the time the policy was issued. Some insurance companies offer up to an additional 150 percent of the agreed value if, prior to loss, the market value is higher than the scheduled amount.
• Coverage extends to newly acquired property.
• The floater provides worldwide coverage.
• Full coverage applies to items in transit or while at any other location away from your home.
• Scheduled and unscheduled (blanket) options are available.

Most insurance companies, including Cincinnati Insurance, offer a package or multi-policy discount.

Types of Covered Personal Property

A personal articles floater can offer proper protection for collections such as these – and many other rare or unique items:

Don’t leave insurance coverage for your collection to chance. If you are uncertain about your current insurance policy and the coverage in place for your valuables, contact your local independent agent for guidance. Your agent has the expertise to assist you in obtaining the appropriate amount of insurance protection for your collection.