High-Value Items? Add a Floater Policy to Your Homeowners Insurance

You’ve secured home insurance in Los Angeles, and now your home and belongings will be fully covered if the need arises, right? Although this is true for most of your possessions, high-value items may require added insurance.

What’s Typical

Your home insurance in Los Angeles includes some coverage for items like furs, art and jewelry, but a standard policy limits liability, usually to $1,500. That might not be enough.

Two Paths to Better Coverage

To insure those expensive, hard-to-replace items, you can either raise the liability limit or add a floater policy (also called an endorsement). Of these two choices, raising the liability is less expensive, but the liability cap may still be too low for your needs.

Add a Floater

If an item is worth more than $1,000 to $2,000, it should be added to the homeowner’s policy as an endorsement, says the nonprofit Insurance Information Institute. There are typically no deductibles on this extra insurance, and “mysterious disappearance” is usually covered. Thus, you would be financially protected if, for example, your diamond wedding ring is lost forever at the beach.

Appraise Your Treasures

Extra documentation is required for floater policies. Save your receipt, and take pictures of the item. An appraisal from an expert may be required. Save the appraisal, receipt, and photos in a safe place.

Don’t assume your home insurance in Los Angeles covers expensive items adequately. Ask your insurance specialist about adding an endorsement to give these items the protection they deserve.

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