Did you know that your most treasured possessions may not be fully protected by your homeowner’s or renter’s insurance? While your policy may offer great coverage, it may require deductibles and have coverage limitations.
A personal articles policy provides more aggressive coverage than a homeowner’s policy for both causes of loss and higher limits. For example, mysterious disappearances and breakage of your items can be covered under this policy. There are also “sub limits” of coverage for “special” items. Check with your local agent for the details on those items. These are predetermined amounts, normally between $1,000 and $2,500. But what if you need to insure belongings that exceed the lower pre-set values, or if you want to insure your items against losses other than theft or destruction by covered perils?
For example, if the diamond fell out of your wedding ring, you would not be covered by the typical homeowner’s or renter’s insurance policy. This is where “personal articles insurance,” formally known as a personal articles policy, comes into play. A personal articles floater is an actual insurance policy, as opposed to an endorsement or extended coverage type on an existing policy.
Worldwide Coverage – Personal property coverage applies anywhere in the world. When you go on vacation, items such as jewelry and cameras are covered (fine art items are only covered within the United States and Canada).
Replacement Cost Coverage – Most plans pay the cost to repair or replace your personal property, without deduction for depreciation. The personal articles policy insures against theft and accidental direct physical damage to covered property with only a few limitations and exclusions.
Deductible – Generally, there is no deductible for a personal articles policy, although deductibles are available if desired.
Broad Pair and Set Coverage – You will be covered for the full amount needed to replace an item of jewelry that may be part of a pair or set. For example, a pair of earrings would qualify for this coverage.
Inflation Coverage – The amount of coverage is automatically adjusted annually based on the consumer product inflation index. Valuable items should be professionally reappraised regularly.
Wedding Present Coverage – Coverage for wedding presents may be added by endorsement. This endorsement provides temporary coverage (before and up to 90 days after your wedding) to protect your gifts.
Make sure your personal property is adequately covered against theft, accidental damage, or loss by adding a personal articles policy.