Inland Marine Coverage… Why You Need This Insurance
Inland marine policies are often a great conversation starter with our clients. As soon as one of our clients receives this policy in the mail, we often receive a call requesting an explanation on why they are receiving a “marine” policy when they don’t own a watercraft. Surprise, surprise! Inland marine policies provide coverage for certain types of personal or commercial property that “travel” more frequently than your dining room table. Inland marine – get it?
Now it’s time for a quick history on this very important coverage. Inland marine coverage was inspired by ocean marine insurance from the 1700s and 1800s when goods were shipped from England to the United States. Businesses wanted to ensure their cargo on the ship was covered because the cargo on the ships was often just as valuable as the ship itself. Thus, inland marine coverage was born.
A common misconception about inland marine policies is that clients don’t think they need additional coverage for their personal property or understand why it is so important to consider a separate policy. Who can blame them? Both the homeowners insurance and commercial property insurance include personal property coverage, so why would clients need extra insurance? Let’s dig in.
Personal Inland Marine Coverage
On the personal side, insurance carriers, agents, and policyholders often refer to inland marine policies as a “jewelry floater” or “personal articles floater” because the policy is often insuring property that “floats”, meaning it moves around. A homeowners or renters policy is designed to cover personal property located at the insureds’ residence and contains wording that limits the amount of coverage for property away from the residence premises.
Also, while your homeowners policy provides coverage for personal property, it also contains sub-limits or “special limits of liability” for certain types of personal property. For example, if you suffer a loss to your $10,000 diamond engagement ring due to theft or misplacement, the standard, unendorsed homeowners policy is only going to pay out according to the sub-limit set for jewelry, which can be as low as $1,500. Don’t forget the policy deductible, as that will also apply, potentially reducing your claim payout even more.
Commercial Inland Marine Coverage
Commercial property insurance is intended to cover business property that is located at the covered location. An inland marine policy helps to protect property like equipment, property stored offsite, such as in or on vehicles or at jobsites, and other property that is often moved from one place to another.
With inland marine policies, you can also elect to have a lower deductible or no deductible at all. Some common items that we see scheduled on an inland marine policy are:
Furs
Jewelry
Firearms
Camera equipment
Golf equipment
Art collections
Fine china and other silverware
Musical instruments
Equipment
Personal computers
Sports equipment
Hearing aids
Tools
Construction machinery
Drones
So, next time you hear inland marine from your insurance agent, get excited as you know it is not about a boat that you do not own.
Feel free to contact us here at Bagwell & Bagwell if you are unsure of what your current homeowners, property policies or inland marine policies are covering. We are here to help!
References
https://www.byarswright.com/everything-you-need-to-know-about-a-personal-articles-policy-and-protecting-your-valuable-items-this-holiday-season/#:~:text=Separate%20from%20your%20homeowner's%20or,higher%20likelihood%20of%20being%20stolen.
https://www.thetruthaboutinsurance.com/personal-articles-insurance/
https://www.insureon.com/small-business-insurance/inland-marine