If you have a homeowner’s insurance policy, you probably understand that your policy covers the contents of your home, not just the structure. But a general homeowner’s policy has limitations on the dollar amount of coverage. Also, under a general homeowner’s policy there may be restrictions on coverage based solely on the cause of the loss. For instance, did you know:
* Some homeowner’s policies will not cover damage done by a house guest?
* Or that damage from some types of natural disasters are not always covered under your homeowner’s policy?
* Or that there is probably a very low level of coverage on certain items (jewelry, for example) in the event of a theft?
There are a few ways you can handle this. You can raise your coverage limit on your homeowner’s policy, but that will only take you so far. Or you can lock your valuables away in an everything-proof treasure chest…but then what’s the point of having them? Probably the better option is getting a floater policy.
Valuable articles floater policies become important around this time of year particularly because of exceedingly valuable gifts that tend to be exchanged on Valentine’s Day (again, jewelry). But they are important all the time if you are a person who has valuable items in your home.
A floater policy will cover losses of almost any type. Any exceptions to that would be listed on the policy. But what types of items could be covered?
* Valuable furs, even imitation fur may require a floater policy.
* Specialty electronics equipment should probably be covered under a floater. So if you are a photography enthusiast and own a variety of specialty equipment this will apply to you. Same goes for if you are a musician and have expensive instruments or sound equipment. Of course if these things are your livelihood then they will be covered under a commercial policy.
* Golf, cycling or hunting enthusiasts know that some people who share your passion are willing to pay extravagant amounts of money for equipment. Maybe you are one of those people. If you are, that equipment should be covered under a floater policy.
* Do you own valuable pieces of art, fine china, or other collectibles (stamps, coins). These all kind of fit under the same category but they may be handled in very different ways under a floater policy; either for the amount of insurance stated in the schedule for that particular item, an itemized listing of the pieces, or by blanket coverage. If by blanket coverage, no appraisal would be required.
The floater policy can provide virtually unlimited amounts worth of coverage, with $10,000-$20,000 worth of coverage per single item common (depending on the item) with no deductible.
Another valuable feature of a floater policy is that it allows you a window to report new items you’ve purchased. If you have this policy and you add a valuable piece to your collection which is then stolen, you may still be able to be compensated even if it wasn’t listed on the policy originally.
It is important to remember that items worth over $1,000 will usually be required to be appraised before being insured with a floater, and you’ll need to provide proof of that appraisal. In the event of loss, you will be compensated in one of the following ways, whichever is the lowest:
* The cash value of the item
* The amount for which the item could be reasonably expected to be repaired or replaced
* The amount of the insurance you have on the item
Please call your nearest Horihan Insurance location if you have any questions about this complex yet very important type of coverage.