Floater insurance is a type of insurance policy that covers easily movable property. It provides additional coverage over what regular insurance, such as home insurance policies, does not.
Originally developed for loss to movable or specialized types of property, it was historically known as Inland marine insurance. The term floater insurance was adopted from the original purpose since the property to which coverage was originally extended was ‘floating.’
Today, the term floater insurance means that the policy ‘floats’ (i.e.travels) with the items of value.
What Does a Personal Article Floater Cover?
Most home insurance policies will cover everyday personal items such as appliances, furniture, clothing, etc. in the event of a theft or loss.
While other valuable items such as jewelry, personal computers, or antiques can be included in this coverage, the value paid out may not be enough to cover the cost of replacement. Some items may not be covered at all due to various exclusions and limitations on homeowner coverage.
A personal article floater is stand-alone insurance coverage that is either a separate policy or an endorsement added to your homeowner’s insurance policy, depending on your carrier. It covers valuable personal property that often requires more coverage than what is provided by an insured’s homeowner policy.
Examples of personal property that can be insured with a personal article floater include:
- Jewelry
- Furs
- Cameras
- Musical Instruments
- Silverware
- Personal Computers
- China and Crystal
- Electronic Equipment
- Fine Art items (Books, Rugs, Antiques)
- Postage Stamps
- Rare and Current Coins
Does a Personal Article Floater Cover Jewelry?
One of the most common misconceptions about homeowner’s insurance is that it will cover the costs of stolen or lost jewelry.
Typically, there is a maximum limit for jewelry under a homeowner’s insurance policy. Usually, the amount of jewelry value covered is between $1000 and $1,500 per item limit.
For this reason, a lot of people will look at a personal article floater to provide higher value coverage for high-end pieces of jewelry.
Does a Personal Article Floater Cover Luxury Handbags?
Another common question is whether luxury handbags are covered under your homeowner’s insurance, or whether there is a limit on coverage.
Most homeowner’s policies do not have a per-item limit for Handbags. There is no need to schedule any additional handbag insurance through a personal article floater.
Check Your Policy for Coverage Amounts
If you have a lot of valuable personal jewelry or luxury handbags, it can be a good idea to review the amount of coverage available under your homeowner’s insurance policy.