Most people believe their standard homeowners’ insurance policy is all they need to protect their property. While this may be true in terms of protecting their dwelling and other structures, the same may not be the case when it comes to protecting their personal property. This is because a standard homeowners’ insurance policy typically limits the amount an insured can recover for specific kinds of personal property.

For example, a standard homeowners’ insurance policy may contain various special coverage limitations, such as:

  • $200 for bank notes, bullion, various kinds of precious metals, such as gold, silver, and platinum;
  • $1,500 for securities, accounts, deeds, and other evidence of debt;
  • $1,500 for loss by theft of jewelry, watches, furs, precious and semi-precious stones;
  • $2,500 for loss by theft of firearms; and
  • $2,500 for loss by theft of silver-, gold-, and platinum-ware.

Although property types and coverage limitations may vary among policies, the result is the same—some property will not be covered by a standard homeowners’ insurance policy. This poses a significant risk for those who own property that would be excluded under their standard insurance policy, especially given the value of such property.

If an insured is not adequately covered against the loss of these kinds of property, it may be necessary to acquire additional coverage for such property beyond that which is available under their standard homeowners’ insurance policy. This is often accomplished by obtaining a Personal Property Floater (PPF), which is sometimes referred to as a Scheduled Personal Property Endorsement.

A PPF can either be a separate policy altogether, or it can be added to an existing homeowners’ policy through an endorsement. The purpose of the PPF is to provide insurance coverage that is broader, both in terms of coverage and limits, to a standard homeowners’ policy.

A typical PPF will itemize an insured’s valuable items, along with a description of the property and the amount for which it is insured. As a result, items that would not ordinarily be covered under a standard policy will be covered by the PPF, such as jewelry, furs, fine arts, musical instruments, high-value silverware and flatware, and collectibles, such as firearms, stamps, and coins.

The value of a PPF is quite clear, as is determining whether a homeowner would benefit from the additional security afforded by a PPF. If, after reviewing the coverage limitations in a standard homeowners’ insurance policy it appears that significant property would not be covered in the event of a loss, a PPF should be considered.

If you would like more information about Personal Property Floaters, or if you would like our assistance in determining whether a Personal Property Floater is necessary, please contact us.

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