1. Forms
2. PM
3. PM-00-20

What the form is

The PM 00 20, Personal Effects Floater, is a standard inland marine insurance form developed by the Insurance Services Office (ISO). Its primary purpose is to provide 'open perils' coverage for personal belongings that are usually carried by individuals when they are traveling. This means it covers a broad range of risks, except for those specifically excluded in the policy. A key feature of this form is that coverage applies only when the insured property is away from the insured person's permanent residence (domicile). The PM 00 20 form must be attached to the Personal Inland Marine Conditions form (PM 00 01), which contains general conditions, loss settlement provisions, and exclusions applicable to the coverage.

Classes of business it applies to

This form is designed for personal lines clients and is particularly useful for individuals who travel frequently or for specific situations where personal effects are exposed to increased risks away from home. Examples include:

• Individuals who travel extensively for leisure or business.
• Retirees who live and travel in motor homes without a permanent fixed residence.
• Professionals like actors, singers, or speakers who go on tour or frequently attend conventions with valuable personal items.
• It can be used to insure the personal effects of multiple named individuals attending a convention or on a tour, with separate coverage amounts for each person.

Special considerations

• Limited by Homeowners Coverage: The widespread use of homeowners insurance, which often includes some coverage for personal property away from premises, has somewhat limited the necessity of the Personal Effects Floater. However, it remains a valuable option for those needing broader, open perils coverage or higher limits for items taken while traveling.
• Off-Premises Coverage Only: The form strictly covers property while it is off the premises of the insured's 'domicile'. The term 'domicile' is defined within the form.
• Storage Exclusion: Property in storage is generally excluded, though there can be exceptions for items temporarily left at locations en route during travel. For example, if an insured leaves winter clothes with a friend in another city while on a cruise, intending to pick them up on return, this might not be considered 'in storage' under the form's terms.
• Attachment to PM 00 01: It is crucial to remember that PM 00 20 is not a standalone policy and must be used in conjunction with the PM 00 01 Personal Inland Marine Conditions form.

Key information for agents and underwriters

• Open Perils Coverage: This form offers broader protection than 'named perils' coverage, covering losses from any cause not specifically excluded. This is a key selling point for clients who travel with valuable items.
• Risk Assessment: Underwriters should consider the nature and value of the personal effects, the frequency and destinations of travel, and the insured's lifestyle. Individuals with a higher travel frequency or those visiting locations with higher theft rates may pose a greater risk.
• Defining 'Domicile': Clarity on the insured's 'domicile' is important, especially for individuals with multiple residences or those who live a mobile lifestyle (e.g., in an RV).
• Coverage Gaps with Homeowners: Agents should compare the coverage provided by the client's homeowners policy for off-premises property to identify potential gaps that the PM 00 20 can fill, such as higher limits, broader perils, or specific coverage for items that might be limited under a standard homeowners policy.
• Proper Naming and Limits: When insuring multiple individuals on one floater (e.g., for a group tour), ensure each person is named and a specific amount of insurance is assigned to each.