Getting insurance is one way of securing your properties—your home and other valuable assets. Not all insurance policies are the same, though. And, the best way to benefit from a policy is to ensure that you get the right one. While a homeowners insurance is a popular and a good option, most households are being advised to avail of a floaters insurance.
What is floaters?
Floaters is a policy that covers your important personal items—from those as cheap as clothes to those as expensive as your diamond ring or antique collection. Other things that may be covered by this type of insurance are: appliances (i.e. television, computer, and radio), furniture, compact equipment (i.e. camera), musical instruments, jewelry and watches, as well as fur.
What circumstances does it cover?
A floaters can insure all personal properties regardless of the location. Its coverage is wide, including theft and even simple loss of the insured item—something that other types of policies don’t cover. One of the possible exclusions in the coverage is natural hazard (including war, nuclear disaster, as well as normal wear and tear).
What are its advantages over a regular homeowners policy?
Most homeowners’ policies have a limited coverage, including home construction and some other personal properties. However, seldom do they include all properties inside the house. Whatever coverage they provide may not be enough to cover items of higher value such as jewelries and personal collections. In other instances, they will cover all items but only up to a certain amount. Some policies will only cover a certain percentage of the amount of the replacement unit. Getting a floaters will ensure full coverage of items outside of your homeowners policy, or coverage of items that are within your existing policy but whose coverage is limited (as well as items whose value is in excess of the limit in your home owners policy).
The existing rates for this policy may vary between states and may depend on the item insured. The good thing is that the amount you have to pay can be as little as $30 per year, and there is no deductible.
To determine the value of your personal belongings and ensure that the record will be accurate, you can start to practice keeping receipts of your purchased items. If an item is old and you do not have the purchase receipt anymore, you can have it appraised. You can send a copy of the documents to your agent while keeping the original copy for yourself. This is a good insurance against possible disputes in the future.