What can an insured do when a homeowner’s policy doesn’t provide adequate coverage for a valuable
collection? Whether it’s jewelry, art, wine, or other items, a personal articles policy can help fill the
coverage gap.
In the summer of 2014, a near-perfect copy of Action Comics No.1, the first comic book featuring Superman in 1938, was listed for auction on eBay. Bidding began at less than $1. Within 2 hours, it had skyrocketed to $1.6M. The comic ultimately sold for more than $3.2M, making it the most expensive comic ever sold at the time. This is a prime example of how collectibles like comic books, sports memorabilia, fine art, or other items can become more valuable over time. Collectibles can also be rich in nostalgia, history, and memories, making them priceless to an owner.6 Once a collection becomes valuable, it’s wise to see that it’s adequately insured.
Some assume that a homeowners policy provides coverage if collectible items are stolen, lost, or damaged, but that’s not always the case. An unendorsed homeowners policy typically caps coverage at $1,500 – $2,500 for items like jewelry, art, or memorabilia.3 Someone with a jewelry collection will likely have multiple pieces far more valuable than $1,500. The same is true of art, wine, and other collectibles. In many cases, a standard carrier can increase limits to a maximum of $50,000 – $100,000. If the value of an insured’s items exceeds these limits, it’s important to partner with a carrier specializing in higherlimit personal article floater (PAF) policies.
WHAT IS PERSONAL ARTICLE FLOATER COVERAGE?
PAF insurance is a standalone policy that provides coverage for valuable personal items. It’s a flexible form of coverage commonly used to insure jewelry, fine art, musical instruments, camera equipment, and other personal possessions. It’s an individualized coverage option that can be applied to one valuable item or an entire collection.6 Limits, terms, and conditions vary based on the specific items insured. Still, a PAF policy can cover nearly anything of value against a wide range of risks, including loss, accidental damage, or theft. The policy’s value is usually based on a credible third-party appraisal. However, depending on the carrier’s requirements, a “Bill of Sale” may be an appraisal alternative for many items valued at or below $25,000. Premium varies based on the value of the items insured and the underlying risk, but PAF coverage is generally affordable. Prices have remained stable in recent years, even as other lines of coverage experienced price increases.
WHY ARE PERSONAL ARTICLE FLOATER POLICIES INCREASING IN POPULARITY?
After several years as a rarely used form of coverage, there has been a recent uptick in demand for PAF coverage. This is likely due to emerging challenges in the homeowners insurance market. Homeowners in more catastrophe-prone areas or those at higher risk for flooding or wildfire may have difficulty obtaining homeowner’s coverage. California continues to experience elevated homeowner insurance non-renewables in wildfire-prone areas, promoting the Department of Insurance to issue multiple one-year moratoriums protecting hundreds of thousands of policyholders from insurer-initiated cancellations and non-renewals following major wildfires. In 2024 alone, moratoriums protected over one million policyholders following separate wildfire events.9
When a homeowner’s policy is not renewed, limited options exist to replace coverage. Many attempt to obtain insurance from another carrier at a higher price or with reduced limits. Others may seek coverage through their state’s Fair Access to Insurance Requirements (FAIR) program. FAIR plans are designed for homes that don’t qualify for standard homeowner’s insurance due to their condition, location, or claims history. FAIR coverage is often available in coastal states and others that experience wildfire. Today, 33 states maintain a FAIR Plan or other residual market mechanism to help property owners who are unable to obtain insurance through the traditional market.5
In either case, the homeowner will likely end up with less than adequate coverage for valuable items or collectibles.
Another factor driving the popularity of Personal Article Floater policies is that they are often issued separately from the homeowners policy. By placing valuable items such as jewelry, fine art, watches, wine collections, and collectibles on a standalone PAF policy, any future loss under that coverage is generally reported to the floater policy rather than the homeowner’s policy. For insureds concerned about maintaining a clean homeowner’s loss history, this separation can be an attractive option. A significant claim involving a scheduled valuable item may be less likely to impact the eligibility, pricing, or renewal of the underlying homeowner’s policy, making standalone PAF coverage an appealing risk management solution for clients with high-value possessions.
WHAT YOU SHOULD KNOW ABOUT OBTAINING PERSONAL ARTICLES COVERAGE
PAF policies are a straightforward and affordable form of coverage. However, knowing what underwriting expects before developing a submission is helpful. Underwriters want to see information about the security in place to keep valuables safe or how often an item is used. Carriers also frequently ask questions about how collectible items are stored. Details about climate-controlled environments, security cameras, or other measures designed to prevent theft are helpful in appropriately assessing the level of risk. Generally, the more valuable the item, the higher the insurer’s expectations regarding security.
Underwriting may also request information about the homeowner’s claim history. Someone with a history of losses will likely experience more difficulty obtaining full coverage. In addition, a less experienced collector may face higher prices than a collector with a strong track record of appropriately securing valuable items. Every scenario is different, but policyholders should expect to answer various questions about item value, storage, and security, with the level of scrutiny increasing in alignment with the collection’s value.
HOW STARWIND CAN HELP
Starwind Personal Lines, a vertical within Starwind Specialty, provides brokers and agents with a dedicated solution for placing standalone Personal Articles Floater (PAF) coverage for clients with valuable possessions and private collections. Designed to address both traditional and complex risks, the program combines specialized underwriting insight, broad market access, and streamlined technology to help clients secure tailored coverage solutions quickly and efficiently.
Starwind’s Personal Articles Floater offers all-risk coverage for individual valuables and collections, with rates available for accounts valued up to $10M. In addition to jewelry, fine art, watches, and collectibles, the program can accommodate harder-to-place assets such as gold bullion, wine, whiskey, cigars, couture handbags, and other unique collections that often require specialized underwriting consideration.
To simplify the placement process, Starwind leverages AI-enhanced quoting technology that reduces the administrative burden associated with PAF submissions. Through drag-and-drop functionality, the platform can electronically read, catalog, and organize appraisals and valuation documents, minimizing manual data entry, and helping you obtain indications and quotes faster.
To learn more, obtain a quote, or access program resources, visit www.starwindpersonallines.com.
CONTRIBUTORS
+ Amy Walker is the President of Starwind High Value Homes, a program within Starwind Personal Lines.
+ Shannon Cini is the Program Manager for Starwind Personal Lines.
END NOTES
1. Insurance Availability and Affordability Under Increasing Wildfire Risk in California, Resources for the Future, November 30, 2022. https://www.rff.org/publications/issue-briefs/insurance-availability-and-affordability-under-increasing-wildfire-risk-in-california/
2. Insurance denied: More Coloradans can’t get homeowners insurance because of wildfire risk, Denver7, January 16, 2023. https://www.denver7.com/news/contact-denver7/insurance-denied-more-coloradans-cant-get-homeowners-insurance-because-of-wildfire-risk
3. Does homeowner insurance cover jewelry?, Bankrate.com, January 6, 2023. https://www.bankrate.com/insurance/homeowners-insurance/does-home-insurance-cover-jewelry/
4. The University of Chicago Press journals. There Is a Potential Collector in Every Consumer. https://www.journals.uchicago.edu/doi/abs/10.1086/737203
5. NAIC. Fair Access to Insurance Requirements Plans. https://content.naic.org/insurance-topics/fair-access-to-insurance-requirements-plans
6. Protecting prized possessions with valuable articles insurance, Insurance Business America, October 8, 2019. https://www.insurancebusinessmag.com/us/news/high-net-worth/protecting-prized-possessions-with-valuable-articles-insurance-180033.aspx
7. Grand View Research. Collectibles Market (2026-2033). https://www.grandviewresearch.com/industry-analysis/collectibles-market-report
8. Art Basel. The Art Basel and UBS Global Art Market Report 2026. https://www.artbasel.com/stories/the-art-basel-and-ubs-global-art-market-report-2026
9. California Department of Insurance. Data and Analysis on Wildfires and Insurance. https://www.insurance.ca.gov/01-consumers/200-wrr/DataAnalysisOnWildfiresAndInsurance.cfm