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What is floating insurance?

Floating insurance is a type of insurance policy that covers personal property that can be easily moved and provides additional coverage to what regular insurance policies do not. Also known as a "personal property buoy," it can cover anything from jewelry and furs to expensive stereos.

How does floating insurance work?

Homeowners insurance often doesn't cover some items completely. The addition of the owner's floating policy confirms that the full value will be replaced in the event of theft, loss or damage. These policies generally cover an individual item, so if you have multiple items that you want full coverage for, you'll need to get a float for each.

A standard home insurance policy includes coverage for all the perils listed on your policy (such as fire, storms, theft, and vandalism) for jewelry and other valuables, such as watches and furs. However, there are limits for some valuables.

Jewelry and other small valuables are easily stolen, so the risk is higher to keep coverage affordable. Standard homeowners policies generally only provide around $ 1,500 to cover such items, which means that an insurance company will not pay more than this amount for any given piece of jewelry. Or other valuable items.

These are some of the key elements covered by floating insurance:

  • Fine arts: such as antiques, books, Chinese, glass, collectibles, fine arts, furniture, glass, lithographs, mirrors, carpets, furniture, paintings, pictures, sculptures and cutlery.
  • Firearms: ancient and modern
  • Cameras - Cameras of any kind, projectors and audiovisual devices are for personal use only, not professional use.
  • Sports equipment: golf, surfing, tennis or other equipment for personal use only, not for professional use.
  • Musical Instruments: Pianos, guitars, electronic devices, and other types of music equipment are for personal use only, not professional use.
  • Postage Stamps - Postage Stamps and Related Materials
  • Collections: collectible coins (including gold and silver), baseball cards, comics, LPs and CDs, and other collections.

Special Considerations

For those who own jewelry, furs, collectibles, or other expensive or irreplaceable items, there are two ways you can increase insurance coverage to levels more commensurate with the value of those items.

Commoner Policy
This includes purchasing a floating policy and scheduling your individual valuables. This security option provides the broadest protection for valuables. The buoys cover losses of any kind, including those not covered by the owner's insurance policy, such as accidental loss - losing a ring on the exchange, or leaving an expensive hour in a hotel room. Before you can purchase a pontoon, items intended for cover must be evaluated by a professional.

It is important to review the float policies every two to three years to make sure the assessments are up to date. You also want to be sure to add new purchases, especially those you might get on birthday or holiday gifts.

Increase liability limits
This is less expensive than buying a separate floating policy, but coverage is limited for both individual lots and total losses. For example, the coverage limits for a single lot can be $ 2,000, with a total limit of $ 5,000.

An example of floating insurance
Susan just bought a new $ 50,000 piece of jewelry. Get into a floating insurance policy to protect against theft and damage to the item.

As part of the insurance process, your jewelry is first evaluated by a reputable jeweler to verify if it is truly original and if it is worth the quoted price. Then the insurance company applies a premium to you. There are two types of claims available for the plot. The former will pay for repairs to the part, while the latter will replace it at its actual value.

Since the value of jewelry does not decrease over time (and may actually increase in some cases), there is a maximum amount that the insurance company will pay Suzanne anyway. Susan must pay 1% of the item's appraised value, or $ 500, as an insurance premium.