Do You Need a Policy to Insure Your Special Floater?

Are you a musician? Do you collect art? Is your jewelry of the diamond and pearl variety? If so, you might consider a floater policy to protect your prized electric guitar or great-grandmother’s earrings.

Often there are limits to your homeowners insurance policy that will make the coverage insufficient for these types of items. They are considered at high risk of theft or loss because they are easy to move or “float.” The solution is a floater policy or a rider added to your current coverage.

A floater policy or rider usually covers one specific item. Therefore, if you own several high-value items, you’ll need to add multiple riders so that you have sufficient coverage for all your valuables. The coverage is broader than the typical coverage provided by regular homeowners policies and includes accidental losses, accidental damage, and theft.

Of course, you will pay extra in premiums, but if you own something that falls into this floating category, you may be happy you spent those extra dollars. For example, if your musical instrument travels with you, the risk of damage or loss can be fairly high. Carrying a floater policy or rider will ensure protection of this prized possession.

You will most likely be required to have your item professionally appraised to obtain this coverage. Depending on the item, the appraisal cost can range from 20 dollars to several hundred.

With more than one item, this could get pricey, but if your rings slip off on your beach vacation, it could be well worth it.