‘Tis better to give than to receive…but receiving isn’t so bad either, especially at the holiday times! If you got some expensive Christmas gifts this year, give a big thanks to your generous family and friends. As you were sitting in a pile of wrapping paper, you were probably not thinking about what would happen if the gifts were stolen or damaged, but your gifts, especially the pricey ones, have financial value and therefore should be protected.
Imagine a devastating house fire or a surprise burglary happening right after Christmas. In addition to the heartache and inconvenience of losing your belongings – it will sting even harder if your brand-new expensive gifts are destroyed. That’s where personal articles floater, or a personal articles policy, insurance comes into play.
What is personal articles floater insurance?
Personal floater insurance, or PAF, is a type of coverage on a stand-alone policy that provides insurance coverage for items beyond the personal property covered on your homeowners or renter’s policy. The “floater” part of this coverage refers to items that are easily movable. Items like furs, expensive jewelry, fine art, valuable collector’s items, etc. are typically what you see on a PAF.
Are Christmas presents covered under my homeowners policy?
A lot of the items in your home are already covered under your homeowners or renters policy, subject to deductibles and policy limits. But at Christmas time, many people are getting big-ticket items like expensive laptops, fine jewelry, pricey guns, etc. Don’t assume these are fully covered. Even if the items are covered on your standard homeowners’ policy, it is likely not enough coverage to fully replace the item as most homeowners’ policies have sub limits for items such as these.
Your agent can answer any questions you may have but purchasing a Personal Articles Floater policy may be the best way to insure your valuables. One rule of thumb is that if an item costs more than $1,000, you probably want to list it on a PAF.
What is the difference between a personal articles floater and personal property coverage?
As you would assume, both a personal articles floater and a personal property coverage both cover personal property. It’s been described that if you were to flip your entire house upside down and shake it, whatever “floats” around and falls to the ceiling would be considered personal property.
A personal property coverage typically comes on your standard homeowners policy yet a PAF may be better suited for extensive protection as personal property coverage on your homeowners can be limited for items with a high financial value. At Alfa®, you must have a homeowners or renters policy with Alfa to be able to get a Personal Articles Floater policy.
It's a good idea to do an inventory check of your personal property and contact one of our local agents to make sure you have the coverage you need.