Susan just bought $50,000 worth of jewelry. She purchases a floater insurance policy to protect the object from theft and damage.
Her jewelry is first evaluated by a reputable jeweler to determine whether it is genuine and worth the quoted price as part of the insurance process.
The insurance company then charges $500 as a premium, or one percent of the item’s assessed value.
The piece can be claimed in one of two ways.
The first will cover the cost of fixing the item, while the second will buy it new at its actual value.
There is a cap on the amount that the insurance company will pay to Susan in either situation because jewelry value does not decrease over time and can even rise in some cases.
