insurance

Personal Articles Floater

A type of insurance policy that provides additional coverage for specific valuable personal items that may not be adequately covered by standard homeowners or renters insurance. It 'floats' with the insured items, meaning coverage applies regardless of where the items are located, and typically covers a broader range of risks including accidental damage and mysterious disappearance.

Example

“Sarah purchased a personal articles floater to insure her $15,000 engagement ring since her renters insurance only covered jewelry up to $1,500.”

Memory Tip

Think of valuable items 'floating' in a protective bubble that follows them wherever they go, unlike regular insurance that stays at home.

Why It Matters

Standard homeowners and renters policies have strict limits on valuable items like jewelry, art, or electronics, often leaving significant coverage gaps. A personal articles floater ensures your most valuable possessions are fully protected against a wide range of risks, preventing major financial losses.

Common Misconception

Many people assume their homeowners insurance covers all their personal belongings at full value, but most policies have sub-limits for categories like jewelry ($1,500-$2,500), art, and electronics. They also don't realize that standard policies typically exclude coverage for accidental damage or mysterious disappearance of valuable items.

In Practice

A photographer with $25,000 worth of camera equipment would find that homeowners insurance might only cover $5,000 for electronics. By purchasing a personal articles floater for $300-500 annually, they get full replacement cost coverage for all listed equipment worldwide, including coverage for accidental damage. If a $3,000 lens is accidentally dropped during a shoot, the floater would pay for replacement while standard homeowners insurance would deny the claim.

Etymology

The term 'floater' comes from maritime insurance, where coverage would 'float' with cargo regardless of which ship carried it, adapted to personal property insurance in the mid-20th century.

Common Misspellings

personal article floaterpersonal articles floatorpersonnal articles floaterpersonal articals floater

Related Terms

homeowners insurance

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