Sometimes Inland Marine policies can be a mystery. When do you use them? When are they necessary? Here are some quick tips to remember what policy does what.
Personal Lines: There are three major inland marine floaters.
Personal Articles Floaters: This is a stand alone policy for fancy stuff. A good way to remember what it covers is that it is an articles floater. Art is pretty fancy and just think of the other fancy things we have. Jewelry, furs, money collections, high quality art, etc. It covers the exact same thing the Scheduled Personal Property Floater does on the homeowners.
Personal Property Floaters: This is an all risk policy that covers “stuff.” Don’t you wish the insurance policies would just call our contents “stuff” instead of personal property? It would be so much easier to explain to insureds.
This policy is designed for those people who want all risk coverage on their contents and are unable to get it through their homeowners’ policies. Some companies will do an endorsement on the HO policies for all risk on the contents. However, this is an alternative.
Personal Effects Floaters – Covers your stuff on vacation. It is all risk with very few exclusions. You state the limit and the time you will be gone and then you do not have to worry if the 10% off premises coverage on the Homeowners will be enough to cover everything. Considering the number of high dollar items we can take on vacation, this may be a nice alternative. A digital camera two, a digital camcorder, golf clubs, clothes and luggage may add up to more than the 10% allowed. Do you have companies that
will sell this?
Commercial Lines:
The business and personal property coverage form on a commercial package does a very good job in covering things within 100 feet of the building. Imagine a 100 foot bubble around the building. What happens when products or property goes outside of this 100 foot bubble?
Inland marine policies are designed to cover things that leave the premises. If a sales person regularly takes things outside of the building, is it valuable enough to consider an inland marine floater? If a fork lift is used on and off premises, then it may be better service to the insured to recommend an inland marine policy.
There are over 20 different inland marine policies. Most of the time the name of the policy tells what it will cover. Keep it in mind for those customers who go to trade shows, or take equipment off premises. Keep that imaginary 100 foot bubble in mind.
Tips of the Trade by Mary Roth CPCU