In addition to the coverages included in your
policy, coverages for special circumstances are
also available. A floater is a separate policy;
an endorsement is an addition to your basic
renters or homeowners policy.
Floaters for High-Value Items
As noted earlier, most policies limit the amount
they pay for theft of high-value items such as jewelry,
furs, silverware or guns. To protect these items
for their full value, you'll need a floater. This
separate policy covers each valuable item individually.
Floaters usually are broader than "named peril"
policies, protecting your valuables against anything
that your policy doesn’t exclude specifically.
The cost of a floater varies. Coverage for a
wristwatch, for example, might cost between $1
and $4.50 per $100 of value, depending on where
you live. Generally, floaters have no deductible.
When buying this policy, you must list and describe
each covered item separately. A bill of sale or
current appraisal and a photograph may also be
required.
Endorsements
Endorsements are additions to your homeowners or
renters policy, which add to or change the policy’s
provisions. For instance, some endorsements extend
the number of perils insured against, some cover
property otherwise excluded, and some increase the
amount the insurer will pay for a covered loss.
Some of the Most Common Endorsements Are:
- Personal Computer (PC) Endorsement
A standard policy covers your PC primarily for
personal use. If you take your computer to the
office or use it at home for business, coverage
may be limited. A PC endorsement increases coverage
limits and covers additional perils for your
PC and software, whether they’re used at
home or, in some instances, at the office.
- Special Coverage Endorsement
This endorsement increases your basic policy’s
limits on jewelry, watches, silverware and furs,
and adds numerous perils not covered in a basic
policy. If, for example, the diamond falls out
of your wedding ring or the garbage disposal
mangles your silver soup ladle, this endorsement
would cover your loss.
- Waterbed Liability Endorsement
This provides coverage for damage done to your
own apartment. If your waterbed leaks and damages
your apartment's carpeting, this endorsement
covers your liability for the accident. Damage
to another tenant’s furniture, however,
would be covered under the liability portion
of a basic renters or homeowners policy. A waterbed
liability endorsement does not cover damage
to your personal property.
- In-Home Businesses
If you operate an office, private school, or
studio in your home, you need an endorsement
on your policy to extend liability and personal
property coverage to the business.
- Earthquake
Standard policies exclude damage from earthquakes.
Earthquake insurance can be expensive, both
because of the great potential of damage, and
the fact that few people buy earthquake policies
— even in California. Earthquake coverage
usually has a separate minimum deductible of
100 percent of the dwelling amount if you have
a homeowners policy. If it is a renters policy,
it is usually 10 percent of the personal property
amount.
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