Home Insurance Terminology Explained

Tips For Adding Extra Protection To Your Valuables With Floaters Insurance

According to Value Penguin, the average homeowner in the United States pays around $952 each year on their homeowner's insurance premiums. In addition to protecting your home, garage and any other structures on your property, the majority of standard homeowner's insurance policies also cover the cost of replacing any objects in your home, in the event of a catastrophe or theft. However, if your items that are destroyed or stolen are very valuable, you might find out that your standard homeowner's policy isn't sufficient. This is where floaters insurance comes in handy. Here is some valuable information about floaters insurance:

Floaters Insurance Basics

Whether you have a fur that has been in the family for years or a piece of jewelry you wouldn't want to part with, you may assume that your homeowner's insurance policy has you covered. Unfortunately, in order to keep your premiums low, you may have accidentally only purchased enough insurance to cover a fraction of what your most valuable belongings are worth.

In order to cover your more valuable pieces, you typically have two options: raising the limit of the total coverage of your household goods or protecting each piece individually under a separate floaters insurance policy. Whether or not you choose either option is dependent upon several different factors. For example, if you have a few pieces that are slightly valuable, you may want to consider raising the limits of your basic homeowner's insurance.

However, if you have several pieces that are very valuable or would be difficult to replace, consider protecting each under a separate floaters policy. The cost of protecting each piece individually will cost more each month or year than raising the overall limit of your basic policy, but if you have belongings that are very expensive or irreplaceable, obtaining floaters insurance is the best option.

Which Items Should I Have Covered by Floaters Insurance?

Now that you've decided to look into floaters insurance, you might be wondering which items deserve this extra coverage. Typically, you should utilize floaters insurance if the items fall into either or both categories: it's very valuable or cannot be replaced. Additionally, you should also consider if the piece would be attractive to thieves, and if they could easily snatch the items from your home.

Here are a few items that you should consider protecting with floaters insurance:

  • Jewelry
  • Furs
  • Expensive electronics
  • Your rare stamp or coin collection
  • Valuable musical instruments
  • China and fine crystal or glass items
  • Silverware
  • Fine artwork

If you're simply not sure whether or not an item is valuable enough to require floaters insurance, or if you simply don't know how much coverage every piece will require, don't hesitate to have a single or multiple pieces professionally appraised. The appraisals will prove invaluable when it comes time to estimate replacement costs.

Speaking with Your Agent

Once you've had the items appraised and made a list of everything you want to cover with floaters insurance, it's time to work with your agent. Your insurance agent can help you determine how much your premiums costs will be, and can even help you save some money each month on your bill.

For example, bundling your homeowner's and auto insurance is one simple way to save big money on your monthly premiums. Additionally, if you are acquiring floaters insurance on several pieces, you might be able to lower the monthly cost of your blanket premium by raising the cost of your deductible.

Protecting your most irreplaceable and valuable items with floaters insurance will give you the peace of mind that comes with knowing you will not lose out, in the event of an accident or theft. If you have any more questions about floaters insurance, don't hesitate to contact your agent right away. For more information, see a website such as http://www.unitedsecurityagency.com.