Personal Inland Marine Declarations (Form PM DS 00)
The PM DS 00, Personal Inland Marine Declarations, is a crucial document that personalizes and activates a Personal Inland Marine policy. It serves as the cover page and summary of the insurance agreement, outlining the specific details of the coverage being provided. This form is used in conjunction with base policy forms like the PM 00 09 (Personal Articles Standard Loss Settlement Form) or PM 00 10 (Personal Articles Agreed Value Loss Settlement Form) to create a complete Personal Inland Marine policy.
Essentially, the PM DS 00 captures the "who, what, when, and where" of the policy. It will include the named insured(s), policy period, mailing address, information about the insurance agent or broker, and a detailed schedule of the items being insured. This schedule is a hallmark of Personal Inland Marine policies, as it typically lists each insured item, its description, and the specific limit of insurance applicable to that item. The form also specifies the premium for the coverage and lists any endorsements that modify the policy's terms.
Classes of Business It Applies To
Personal Inland Marine insurance, and therefore the PM DS 00 declarations page, is designed to provide coverage for valuable personal articles that may have limited or no coverage under a standard homeowners or renters policy. These are often items that are portable, have high value relative to their size, and are susceptible to unique risks. Real-world examples where this form would be integral include policies covering:
- Jewelry: Engagement rings, necklaces, watches, and other valuable pieces.
- Fine Arts: Paintings, sculptures, valuable rugs, and antiques.
- Cameras: Expensive photography and videography equipment, including lenses and accessories.
- Musical Instruments: Both professional and personal instruments, such as guitars, pianos, and violins.
- Furs: Fur coats and other garments made of fur.
- Stamp and Coin Collections: Valuable collections of stamps or coins.
- Silverware and Goldware: Sterling silver flatware, tea sets, and other valuable items.
- Golfers' Equipment: Golf clubs and related accessories.
- Bicycles: High-value bicycles.
- Other Scheduled Personal Property: Depending on the insurer, other categories of valuable personal possessions might be scheduled.
Special Considerations
There are several important points for insurance professionals to keep in mind when utilizing the PM DS 00 and offering Personal Inland Marine coverage:
- Scheduling is Key: The primary function of the PM DS 00 is to list (schedule) the specific items being insured and their individual coverage limits. This is critical for both the insured and the insurer to have a clear understanding of what is covered and for how much.
- Valuation: The declarations page will reflect the valuation basis agreed upon, which is often detailed in the accompanying base form (e.g., "Agreed Value" with PM 00 10 or "Actual Cash Value" or "Replacement Cost" with PM 00 09). Appraisals or bills of sale are frequently required to substantiate the declared values, especially for high-value items.
- Coverage Breadth: Personal Inland Marine policies often provide "all-risk" or "open perils" coverage, meaning they cover losses from any cause unless specifically excluded. This is generally broader than the named perils coverage found in many homeowners policies.
- Worldwide Coverage: Many Personal Inland Marine policies offer worldwide coverage, which is a significant benefit for items that may travel with the insured.
- Relationship to Homeowners Policy: It's crucial to understand how a Personal Inland Marine policy interacts with any existing homeowners or renters insurance. While the PIM policy provides broader coverage for scheduled items, the homeowners policy might still offer some limited coverage for unscheduled personal property. The PIM policy is designed to fill coverage gaps for valuable articles.
- Newly Acquired Property: Some Personal Inland Marine forms, referenced on the declarations, may provide temporary coverage for newly acquired items of a type already scheduled. The declarations or policy will specify the time limit for reporting such acquisitions and the coverage limit applicable.
Key Information for Agents and Underwriters
Agents and underwriters play a vital role in ensuring the PM DS 00 accurately reflects the agreed-upon coverage and that the risk is properly assessed and priced:
- Accurate Descriptions and Values: Meticulous attention to detail is required when completing the schedule of articles on the PM DS 00. Vague descriptions or incorrect values can lead to significant problems at the time of a claim. Underwriters will often require recent appraisals (typically within 1-3 years) for high-value items like jewelry and fine arts to support the scheduled values.
- Risk Assessment: Underwriters will assess the risk based on the type of property, its value, the insured's location, security measures in place (e.g., safes, alarm systems), and loss history. For example, insuring a large jewelry schedule for an individual who travels extensively presents a different risk profile than insuring a fine art collection that remains in a secured home.
- Pricing: Premiums for Personal Inland Marine coverage are typically based on the type of property and its scheduled value. Rates will vary by class of item (e.g., jewelry rates are generally higher than rates for silverware due to higher theft risk). Deductibles, if any, will also be noted on the declarations and will affect the premium.
- Coverage Gaps and Endorsements: Agents should identify potential coverage gaps. For instance, while a standard PIM policy might cover theft, specific exclusions could apply. The PM DS 00 will list any endorsements attached to the policy that modify coverage, such as exclusions for wear and tear, gradual deterioration, or damage caused by pets.
- Moral Hazard: Due to the nature of the items covered (valuable and portable), underwriters are particularly attentive to potential moral or morale hazards. A thorough understanding of the client and their circumstances is important.
- Understanding Related Forms: The PM DS 00 is a component part of the overall Personal Inland Marine policy. It must be used with a base coverage form (like PM 00 09 or PM 00 10) and any applicable endorsements. The declarations page ties all these pieces together.