Floater insurance and the importance of knowing what is and is not covered by your homeowners’ or renters’ insurance policy
By: Chase Carlisle
If a theft occurs at your home, it is important to know which valuables are covered under your homeowners’ or renters’ insurance policy. In many cases, standard homeowners’ policies will cover a small number of valuables, but are not likely to provide enough protection to cover you for each item lost. In addition, a majority of renters’ insurance policies do not have coverage for valuables. When it comes to protecting your personal belongings, it is important to know what options you have when it comes to coverage.
When it comes to valuables, there are two options to ensure everything is covered. The simplest option is to raise the limit of liability. This will help cover more belongings than a standard homeowners’ insurance policy, but it limits the amount you can claim for an individual piece. In this case, you have an overall limit you cannot go over, and once it is reached, you cannot claim additional losses.
The second option is to individually “schedule” pieces through floater policies. Floater insurance is an addition to your current policy that adds protection for personal property that is deemed to be easily movable. Floater policies are designed to reimburse you if valuable property is lost, damaged or destroyed. Floater policies are designed to only cover specific items named or “scheduled” in the policy.
Jewelry floaters are one of the most common types of floater policies. In most cases, jewelry floaters will either give reimbursement for a claim or pay to replace the lost, damaged or destroyed piece. Jewelry is given more consideration than other personal property considered for floater policies, and in many cases, any jewelry piece valued at more than $1,000 will require an appraisal. Costs of appraisal vary depending on your region and choice of appraiser.
Floater policies often provide broader protection that can cover accidental losses. Accidental losses can include forgetting an item somewhere or dropping it down a drain or a vent. Accidental losses can happen to anyone, and knowing items are covered allows you to take pride in the protection of your belongings.
Jewelry floaters are designed to make sure that any personal items of value will be reimbursed by your insurance company in the event of loss, theft, damage or destruction. It is extremely important to know exactly what is and is not covered by your homeowners’ or renters’ insurance policy, especially when it comes to the belongings that matter the most to you. With floater policies, you know exactly what your coverage is, and you can be confident in the coverage provided by your insurance agency. Before you schedule an item on your floater policy, talk with your insurance representative so you know what your premiums will be and how it will work with your current homeowners’ insurance plan.
For more information, visit Carlisle Insurance online at www.carlisleins.com.