Personal Effects Floater

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Open Perils Coverage on Property Carried by Travelers

Summary: The personal effects floater, a standard inland marine form promulgated by Insurance Services Office (ISO), provides open perils coverage on personal effects usually carried by tourists and travelers. The coverage applies only to such property belonging to and used or worn by an insured (the named insured, spouse, and unmarried resident children) and only while the insured property is off the premises of the insured’s domicile.

The ISO form is PM 00 20 12 02; the American Association of Insurance Services (AAIS) writes personal effects insurance subject to substantially the same provisions, using Form IM-177.)

Like the personal articles floater, the PM 00 20 must be attached to the PM 00 01 12 02, since this form contains the loss settlement conditions, exclusions, and general conditions.

Topics Covered

Need for personal effects coverage

Property covered; property not covered

Perils insured against

Loss conditions

Coverage options

Need for Personal Effects Coverage

The widespread acceptance of homeowners insurance as the preferred method of covering most property that comes under the heading of “personal effects” has limited the usefulness of the personal effects floater. Nevertheless, the floater’s coverage represents a convenient form of insurance for certain persons or situations. For example, the coverage may be desired by retirees, with no residence, who tour the country in motor homes. Additionally, the form may be used for persons who frequently attend conventions, or who go on tour, as an actor or singer. Rules in the ISO personal inland marine manual permit a single floater to be issued for several persons attending a convention or on a tour. Each person covered must be named individually and a separate amount of insurance must be assigned to each person.