In Personal Articles Insurance, personal articles are especially valuable items of personal property that are either limited by terms of the homeowner policies or ineffectively covered by a homeowner policy that has not been endorsed to provide additional coverage to limited property. When you use personal articles insurance you can add coverage for especially valuable special property like jewelry and collectibles that are exposed to types of losses that the homeowner insurance policy was not designed to cover. After all, the homeowner policy is merely an average of coverage needs that suits many, but not all, families buying homeowner insurance.
Property Covered by A Personal Articles Insurance Policy
Typically we use the inland marine personal articles insurance floater to cover unique and especially valuable property. Property exposed to unique hazards or causes of loss are often added to this endorsement to a homeowner policy. For example, a standard homeowner policy does not deal with the loss of precious stones from a ring when there is no theft. A personal articles insurance (endorsement or policy) covers this kind of loss in addition to others. The typical types of property best served by a personal articles insurance policy includes the following:
- Jewelry and engagement rings
- Silverware, china and crystal
- Fine Art
- Stamp and coin collections
- Sound equipment (recorders)
- Sports equipment (archery, camping, fishing, skiing)
- Wedding gifts
- Cameras and related equipment
- Musical Instruments
- Golf and Sports Equipment
- Collections and Collectibles
Examples of Personal Articles Insurance In Action
Let’s give you two examples of how the homeowner policy may not provide the coverage you require or desire for your precious items. Let’s take a diamond engagement ring as the first example.
Your homeowner policy will provide theft coverage for a loss in most instances up to a dollar value of say, $1,500. However, if you want more coverage you will need to endorse the policy to add additional value or add an inland marine personal articles insurance coverage endorsement (or policy).
Example 1: However, the HO3 homeowner policy (the most commonly issued policy we offer) will limit losses to those causes of loss actually named and listed in the policy. Theft is covered, but the coverage is limited to a small amount as noted above. What happens if the diamond stone is lost from the ring? This “mysterious disappearance” was likely the result of damage to the prongs holding the stone to the mounting of the ring and is not a listed cause of loss in a homeowner policy. However, an inland marine personal articles insurance endorsement to your home policy will provide “all risk” coverage. Actually, the coverage is for all accidental direct physical loss unless excluded or limited. This means, absent the application of an exclusion to the loss, the diamond is covered up to the listed limit or value of the ring as described in the endorsement. This provides the broadest available coverage for your jewelry.
Example 2: Lets also consider another potential scenario. Again, the most commonly issued homeowner policy is the HO3 special form of coverage. This form provides coverage for personal property on a named cause of loss basis. If coverage isn’t named in the policy, it is not covered by the policy. If your collection of porcelain figurines are accidently damaged when the cabinet is knocked over, there will be no coverage for breakage under the homeowner policy. However, the inland marine personal articles insurance endorsement (or separate policy) will provide coverage for almost all forms of direct physical loss unless excluded or limited. Breakage is often an additional cause of loss that can be included in the personal articles insurance endorsement so if you have items subject to breakage you should request that breakage be included in your additional coverage endorsement.
Protecting your valuables and collections is an affordable option with a personal articles insurance endorsement to your home policy. In some cases we can provide this endorsement as a stand-alone policy when the collections or values are extensive. We know that these items are important to you so please make sure to mention your valuable items and you should assume that most homeowner policies will not provide the broad protection you will expect for many types of valuable personal property and collections.
And, if you have questions or want more personal attention and advice, contact Terry McCarthy at (513) 779-7920 Monday – Friday from 9 – 5 most days. If other times are needed, call and schedule an appointment at a more convenience time.