The homeowners policy can cover many of the risks to which an average household is exposed. But there are certain risks for which the insured will require additional coverage. That’s where Inland Marine Insurance comes in. The term was developed from ocean marine insurance which provides very broad coverage for property being transported over water. Once the cargo arrived at the port of entry, it was then transported over land – thus, the term inland marine. Inland marine insurance provides the same type of broad, flexible coverage for portable personal property. Since coverage is provided to portable property, it is sometimes called “floaters”.
Today, inland marine insurance policies can insure a wide variety of property that generally falls into four categories:
- Property that is in transit – such as cargo aboard a truck or train
- Specialized property at fixed locations – such as radio & TV towers, bridges, signs, fencing, piers, building materials, computer equipment, accounts receivable, valuable papers, leased equipment
- Property that moves – such as mobile medical equipment, contractors tools & equipment, exhibitions, construction equipment, golf equipment, guns, jewelry, furs, fine arts
- Property held by a bailee – such as clothing left at a dry cleaner, riggers’ liability, warehouse liability
Personal inland marine floaters provide open peril coverage, although a few exclusions apply, such as:
- Nuclear Hazard
- Wear and Tear
- Gradual Deterioration
- Inherent Vice (a condition or defect that exists within the property)
Inland marine coverage forms can offer broader coverage than found in standard property insurance forms. Due to less regulation, underwriters have greater flexibility in terms of the type of property that can be insured as well as pricing.
If you have any questions about this topic or would like to get a quote, give us a call at 860 684 2721 or visit our website for more information.