1) What is a “target item”?
Most homeowner insurance policies contain wording that addresses “target items”. Target items are typically items of high value that are susceptible to theft. Examples of “target items” include jewelry, cash, high value antiques and priceless collections. On almost all homeowner policies, policy wording limits the insurance company’s liability on these items in the event of a loss or claim.
2) How does a PAF protect you in comparison to a homeowner policy?
A Personal Article Floater is much more comprehensive than a homeowner policy. For one, the PAF covers the values that you declare on an item as opposed to a homeowner policy, which will only pay up to the limit described for that target item. Furthermore, a homeowner policy will only cover your goods at your premises whereas PAF coverage has no territorial limits and has no exclusions to types of perils covered.
3) What is the difference between a Ryder on a homeowner policy and PAF?
A Ryder on a homeowner policy increases the limits of liability that an insurance company will pay in the case of loss or damage to a target item. This is similar to what a PAF policy does but there are some key differences. For one, the PAF policy will cover against all risks whereas a Ryder only covers against risks that the homeowner policy covers. For example, if your antique painting is damaged during an earthquake, even if the painting is listed in your policy as a Ryder or Endorsement, the insurance company will still deny liability because earthquake is generally not covered on the master homeowner policy. Furthermore, territorial limits still apply meaning that the loss would have to occur at your place of residence.
4) What types of items are commonly insured with a PAF?
Items that are commonly insured include but are not limited to: jewelry, loose stones, artwork, antiques, special collections, sports memorabilia, bullion & cash.