Home Insurance vs. Personal Articles Insurance Coverage

Most people believe that all your personal property is covered by a homeowners or renters insurance policy, leaving many homeowners surprised to learn that many personal articles are not actually covered. Even in the few home insurance policies that cover personal items, there is usually a financial limit on what the pay-out will be for these items in the case of a loss. Often this amount is much lower than the actual value of the personal article. That’s where personal article insurance or personal article floater coverage comes in useful. Nowell Agency is here to share the intricacies of home insurance and personal article insurance policies, and where these two coverages merge and diverge. 

What is Personal Article Coverage? 

A personal articles plan is an insurance policy that covers your personal belongings specifically. While the coverage limits and premiums will vary depending on the insurer, a personal article policy is typically quite affordable and well worth the peace of mind it provides. 

Another type of personal articles coverage is what’s known as a personal article floater policy. This coverage is designed to protect readily movable property. The coverage travels or “floats” with the valuable items. The benefit of getting a personal article floater insurance plan is that it can supplement your other standard insurance policies, like your home insurance. A personal article floater can usually be purchased as a stand-alone policy or an endorsement from your current insurer. 

What Does Personal Articles Insurance Cover?

A personal article floater plan can cover a wide range of personal property items, such as:

• Jewelry and luxury handbags
• Antiques
• Furs
• Electronics, cameras, and computers
• Coin and stamp collections
• Sports memorabilia
• Fine china, silverware, and glassware
• Art
• Much more…

You’ll notice that some of these items are those that you would be transporting from location to location as you travel or move from home to home. That’s where personal article floater insurance comes in handy as coverage for the item regardless of its location. 

Best Personal Articles Insurance Near Me

Personal articles insurance plans can provide you with several settlement options in the event that something happens to your belongings. Events that wreak destruction on your personal property may include natural disasters, floods, earthquakes, or theft, to name a few. 

So, what are the settlement options for personal articles insurance? The details depend on your specific insurance for personal articles and what you indicate as your preferred solution. Typically, insurance agencies who offer personal articles plans will offer two settlement options:

• Agreed value settlement for personal articles: This settlement solution usually pays the value associated with the item as listed on the policy. This option may require an additional premium, as you will receive the full value that you and the insurance agency agree upon as the valued amount of the item.
• Replacement cost settlement for personal articles: This type of insurance settlement generally provides coverage that will replace the item with another item of the same kind or quality. At times it will turn out that the amount or cost of the replacement is lower than the value listed on the policy.

In either settlement scenario, you’ll be protected in the case of an unexpected loss of personal articles. If you’re looking to insure your most treasured possessions, be sure to contact the Nowell Agency today about personal article insurance. Call 601.203.0456 or click for a free personal articles insurance quote!