Traveling exposes personal property to a unique set of risks, many of which are not covered under a named perils policy. The open perils feature of the personal effects floater fills this coverage gap. An insured with any considerable values at risk, such as cameras, jewelry, furs, and golfing equipment, may already have such property insured under a personal articles floater or the equivalent homeowners endorsement. Such an insured should still consider obtaining the same degree of protection on other property to be taken along on a trip.

Certain property is limited to 10% of the amount of insurance that applies to the personal effects, with a maximum of $100 for any one item. The property limited is jewelry, watches, articles consisting in whole or in part of silver, gold, platinum; and fur or articles trimmed with or consisting principally of fur. Note that the special limit may not be increased – those wanting higher limits need to schedule the property under the Personal Articles or a class-specific form.

Property Covered; Property Not Covered

A. Property Covered
1. Personal Effects
We cover personal effects usually carried by tourists and travelers that an "insured" owns and uses or wears while anywhere in the world.
2. Special Limits Of Liability
The limit for the following property is 10% of the amount of insurance that applies to personal effects:

a. Jewelry, watches and articles consisting in whole or in part of silver, gold or platinum; and
b Fur or articles trimmed with or consisting principally of furs.
We will not pay more than $100 of this limit for any one item.

B. Property Not Covered
We do not cover:
1. Personal effects while:

a. At "your domicile". "Your domicile" means your permanent residence to which, whenever absent, you intend to return;
b. In storage. However, we do cover such property at points and places en route during travel; or
c. In the custody of students while:

(1) In dormitories or fraternity or sorority houses; or
(2) On the premises of educational institutions.
However, we do cover such property for loss by the peril of fire.

2. Accounts, bills, currency, deeds, documents, evidences of debt, letters of credit, money, notes securities, passports and transportation or other tickets;
3. Animals, artificial teeth or limbs and contact lenses;
4. Bicycles, hovercraft, motors, motor vehicles, watercraft and other conveyances including their accessories, equipment and parts;
5. Household furniture;
6. Merchandise for sale or exhibition;
7. Physicians and surgeons instruments;
8. Salesperson's samples;
9. Theatrical property;
10. Contraband or property in the course of illegal transportation or trade; or
11. Any property specifically or otherwise insured.

Analysis

The policy covers personal effects usually carried by tourists or travelers, and that an "insured" owns and uses while anywhere in the world. The property is covered while the insured is traveling with it.

Certain property has special limits, that being jewelry, watches, articles consisting of gold, silver, or platinum, in whole or in part, and furs or articles trimmed with or consisting principally of fur. These limits are restrictive and limited to ten percent of the amount of insurance that applies to personal effects, and even so no more than $100 will be paid for any one item. If an insured is traveling with valuable jewelry, she cannot rely on this form to provide coverage. It would be better to insure the property on the Jewelry and Furs form PM 00 11 or another form.

Property not covered first explains that personal effects at "your domicile" are not covered. "Your domicile" is defined as the insured's permanent residence, to which whenever the insured is absent, the insured intends to return to. Also not covered are personal effects while in storage, unless it is stored while the insured is en route during travel.

Also excluded is property in the custody of students while they are in dormitories or fraternity or sorority houses, or on the premises of an educational institution. There is, however, coverage for loss by fire for property of students. The form is very specifically designed to provide coverage while an insured is traveling.

Loss occurring to property in storage is excluded. An exception exists for stored property when it is left at points and places en route during travel. If an insured puts property in the hotel safe while traveling, that would be covered.

A large list of other property is excluded, including accounts, bills, currency, deeds, documents, evidences of debt, money, passports, transportation and other tickets; animals, artificial teeth or limbs and contact lenses; bicycles, hovercraft, motors, motor vehicles and other conveyances including equipment and parts; household furniture, merchandise for sale or exhibition, physicians or surgeons equipment, salesperson's samples, theatrical property, contraband or other illegal property, and any other property specifically insured. Some of these excluded items are used in business, others are not likely to be taken on vacation (few people take the sofa with them), and others such as money and currency are tempting to thieves, and others are small and easily lost.

Perils Insured Against

1. Loss caused by wear and tear, deterioration, inherent vice or any quality in property that causes it to damage or destroy itself;
2. Loss caused by insects or vermin;
3. Loss caused by or resulting from work done to or handling the property; or
4. Breakage of fragile articles unless caused by:

(a) An accident to a conveyance;
(b) A fire; or
(c) A thief.

Analysis

Coverage is on an open perils basis with some exclusions characteristic of open perils inland marine policies, such as wear and tear and inherent vice, and breakage of fragile items unless caused by thieves, fire or vehicle accident. Wear and tear are to be expected, and the insured is expected to protect the property from insects and vermin. Note as well the exclusion for loss caused by having work done to the property, or from its being handled. Such loss would be covered under a policy the repairer of the property should have for her work.

An exception exists for breakage if the breakage is due to an accident to a conveyance, a fire, or a thief. If the property is broken because it is in a vehicle when the vehicle is involved in an accident, that would be covered. Likewise, if a thief is disrupted mid-theft and damages the property, that is covered, as is damage to the property if there is a fire in the insured's hotel room or other temporary location.

Deductible, Options

D. Deductible
We will pay only that part of the total of all loss payable under this policy that exceeds the deductible amount shown in the Declarations.
E. Options
One or more of the following options apply to this policy only if the box for that option is checked in the policy Declarations, or is otherwise indicated elsewhere in this policy.

1. Theft Exclusion
We will not cover loss to covered property caused by:

a. Theft or attempted theft;
b. Burglary, larceny or robbery;
c. Mysterious disappearance; or
d. Vandalism or malicious mischief.

2. Property At Your Domicile Coverage
Paragraph B.1.a. above, personal effects while at "your domicile", is deleted.
Paragraph A. Property Covered above is deleted and replaced by the following:

A. Property Covered

1. Personal Effects
We cover personal effects usually carried by tourists and travelers that an "insured" owns and uses or wears while anywhere in the world.
With regard to personal effects at "your domicile", we will pay only that proportion of any loss to such property that the amount of insurance bears to the actual cash value of all covered property at the time of loss. We will not include the value of the property outlined in 2. below when we make this calculation.
"Your domicile" means your permanent residence to which, whenever absent, you intend to return.
2. Special Limits Of Liability
The limit for the following property is 10% of the amount of insurance that ap-plies to personal effects:

a. Jewelry, watches and articles consisting in whole or in part of silver, gold or platinum; and
b. Furs or articles trimmed with or consisting principally of furs.
We will not pay more than $100 of this limit for any one item.

Analysis

The form assumes full coverage on the property, but deductibles of $100, $250, and $500 are available. In event of a loss, only the amount that exceeds the deductible is what is paid.

There are several optional coverages the insured may select. The options must be indicated on the declarations or elsewhere in the policy.

Theft may be excluded for a reduction in premium. Theft, attempted theft, burglary, larceny, robbery, mysterious disappearance and vandalism or malicious mischief are all excluded if this option is selected.

The exclusion for property at the insured's domicile may be removed as long as it is indicated on the policy. With coverage for personal effects at the domicile, only the proportion of loss to such property that the amount of insurance bears to the actual cash value of all covered property at the time of loss is what is covered. "Your domicile" is again defined as the permanent residence to which, whenever absent, the insured intends to return to. For example, an insured is traveling with a scheduled item with an actual cash value of $500 and the total value of scheduled items is $2000. The $500 is 25 percent of the total of $2000. Therefore, $125 is paid for the item. If the item is jewelry or furs, only $100 would be paid regardless.

Students' Property Coverage

3. Students' Property Coverage
Paragraph B.1.c., which specifies that personal effects in the custody of students are not covered, is deleted.

4. Property In Trailer Home Coverage

a. We cover the furniture and furnishings owned or used by an "insured" contained in or used in connection with:

(1) An auto trailer home; or
(2) A trailer home;
owned or leased by an "insured".

b. We will pay no more than the amount shown in the Declarations or elsewhere in this policy for this Option for any one loss.
c. This coverage option does not apply to:

(1) Accessories, equipment and parts:

(a) Built into and forming a permanent part of the auto trailer home; and
(b) Usually attached to an automobile of the private passenger or truck type;

(2) Loss caused by marring, scratching, dampness of atmosphere or extremes of temperature; or
(3) Loss caused by:

(a) Mechanical breakdown; or
(b) Damage to electrical apparatus caused by electricity whether artificial or natural. If direct loss by fire ensues, we will pay only for the ensuing loss.

Additional Person Insured Coverage
We agree that the additional person named in the Declarations or elsewhere in this policy for this Option is an "insured". You agree that such person is a permanent resident of "your domicile".

Analysis

Another optional coverage is that of property of students away at school. The exclusion may be removed for an additional premium. Likewise, furniture and furnishings in trailer homes owned or leased by an insured can also be covered. No more than the amount shown in the declarations or policy will be paid, and certain items are excluded. Accessories, equipment and parts that are built into and have become a permanent part of the home are excluded, as are parts usually attached to a private passenger auto or truck.

Loss caused by marring, scratching, dampness of atmosphere or extremes of temperature are also excluded. Marring and scratching are often due to wear and tear, and temperature extremes can be prevented with proper temperature regulation.

Loss caused by mechanical breakdown or damage to electrical apparatus caused by electricity, whether artificial or natural, is also excluded. However, direct loss by an ensuing fire is covered.

Additional people may be covered under this form as long as they are listed in the declarations and are a permanent resident of "your domicile". If they do not live with the insured, they will not be covered.

Loss Conditions

Analysis

Lastly, the form removes certain provisions from the Common Policy Provisions form as follows:

D. Loss Conditions

1. Loss Settlement

a. Standard Loss Settlement

(2) Newly Acquired Property
If newly acquired property is covered, we will not pay more than the least of the following amounts:

(a) The actual cash value of the article or item at the time of loss;
(b) The amount for which the article or item could reasonably be expected to be repaired to its condition immediately prior to loss;
(c) The amount for which the article or item could reasonably be expected to be replaced with one substantially identical to it; or
(d) The limit of coverage.

D. Loss Conditions

1. Loss Settlement

b. Agreed Value Loss Settlement – Scheduled Property Only

(1) We will pay the full amount shown in the Schedule for each article or item designated with a double asterisk (**). That amount is agreed to be the value of the article or item.
At our request you will surrender the article or item to us if not lost or stolen.

(2) If the article or item is a pair or set, or consists of several parts when complete:

(a) We will pay the full amount shown in the Schedule for that pair, set or complete article or item; and
(b) At our request, you will surrender it to us if it is not lost or stolen.

(3) In the event a lost or stolen article or item is recovered, you will surrender it to us.
(4) We will, at your request, sell back to you, at a price you and we agree upon, any article or item you surrender to us to comply with the above terms.

c. Unscheduled Property – Blanket Insurance

(1) Postage Stamp Or Rare And Current Coin Collections
We will pay only that proportion of any loss on an unscheduled stamp or coin collection that the amount of blanket insurance bears to the actual cash value of such property at the time of loss, but not more than:

(a) $1,000 on any unscheduled coin collection; or
(b) $250 for any one stamp, coin or individual article or any one pair, strip, block, series sheet, cover, frame or card.

D. Loss Conditions

Loss Clause
We will not reduce the amount of insurance under this policy except for a total loss of scheduled property. We will refund the unearned premium for that property after the loss or you may apply the refund to the premium due for its replacement.

Because of the nature of this endorsement to provide coverage for property that is being used when an insured travels, certain settlement provisions in the Common Policy Provisions form do not make sense, so they are removed.

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