What is A Personal Articles Floater (PAF)?
A PAF is a type of insurance policy designed to provide additional coverage for your valuable personal items that typically exceed the limits of standard homeowners or renters insurance policies. It offers protection against loss, damage, or theft for a range of high-value items.

Unlike the basic property insurance that often comes with a deductible and certain limitations, PAFs usually have no deductible, meaning that in the case of a successful claim, you’ll receive the full dollar amount that you and your insurance company agreed upon at the start of the policy. This specialized coverage ensures that your most treasured items are protected, often worldwide, under a wide array of circumstances.

What types of personal property do PAFs cover?
PAF policies can cover a diverse array of personal property that might be extraordinarily valuable or not covered under standard insurance policies. Common items typically insured under a floater policy include:

  • Jewelry and engagement rings

  • Art and antiques

  • High-end electronics

  • Musical instruments

  • Cameras and photography equipment

  • Stamp or coin collections

  • Sporting equipment

  • Furs

If you have personal belongings that carry significant financial or sentimental value, a PAF may be an important consideration for ensuring those items are protected.

Do you need a PAF policy?
Determining whether you need a PAF depends on several factors, including the value of your possessions and their coverage under existing policies. If your homeowners or renters insurance doesn't fully cover high-value items, or if you require expanded protection (e.g., coverage during travel), then investing in a floater might be a wise choice.

To decide if this insurance suits your needs, conduct a home inventory and have your valuables appraised to ascertain their current market value. Understanding the limitations of your standard insurance will also help guide your decision. Reach out to your insurance agent to learn more about what your standard insurance covers.

How much does a PAF cost?
The cost of a PAF varies based on several factors, including the overall worth of the insured items, your location, chosen coverage options, and the insurance company’s policies. Premiums are usually determined based on a percentage of the item’s appraised value, with more expensive items generally commanding higher insurance rates.

To get the best rate, it's a good idea to shop around and compare quotes from multiple insurers. It's also crucial to regularly re-assess the value of your items and your policy to ensure continued adequate coverage as market values change.

What are my coverage options?
When choosing coverage options, consider the full breadth of protection you require. Policies can differ by insurance providers but often include:

  • All-Risk Coverage: Protects against all potential causes of loss, except those specifically excluded in the policy.

  • Agreed Value Coverage: Pays out the full agreed-upon amount of the item as listed in the policy if a total loss occurs.

  • Replacement Cost Coverage: Reimburses you the cost of buying a new item of similar type and quality without depreciation.

  • Scheduled Items Coverage: You individually list each valuable item along with its appraised value in the policy for specific coverage.

Policies can often be tailored to fit individual needs, ensuring that each of your possessions is protected according to its unique characteristics and risks.

What are my other options?
Apart from purchasing a floater policy, other options include increasing the coverage limit on your existing homeowners or renters insurance or opting for specified perils coverage, which protects against specific risks named in the policy. Additionally, some credit cards offer protection for purchases, including personal property, but this is typically less robust than what a floater policy offers.

It's also worth noting that careful handling and storing of valuable items, as well as investing in security measures for your home, can complement the financial protection insurance provides.

How do I get started with PAF coverage?
Make a list of your valuable items and assign them a value, gathering an appraisal or receipt on those items if you’re unsure. Get a quote from your insurance agent and determine whether increasing your homeowners liability coverage or adding PAF insurance is more cost effective. Remember to review your policy periodically and update coverage as necessary to reflect any new acquisitions or changes in value.

Need a PAF quote? Reach out to a Goosehead agent today.

*Some policies may not have standard limits, so review your policy information to understand your exact sub-limits.

The contents of this article are for informational purposes only. You should not act or refrain from acting based on this information without first consulting a Goosehead licensed agent. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided "as is." Goosehead makes no representation that this content is error-free.

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