What type of coverage does a Fine Arts Floater provide?

A Fine Arts Floater is designed specifically to provide coverage for valuable art collections, including paintings, sculptures, and other forms of creative work. This type of policy often covers art pieces for their appraised value, or the face amount or policy limit stated in the policy. This means that in the event of a covered loss, the insured can recover the full value of the artwork as determined at the time the policy was created, allowing for a more comprehensive protection than a standard homeowners policy might offer.

The other options do not fully capture the essence of the Fine Arts Floater. Some coverage options such as market value or actual cash value (ACV) would not provide the same level of financial protection as coverage for the face amount or policy limit, potentially leaving art owners underinsured in the event of a loss. Coverage based on replacement cost is also not standard for fine art, as the unique nature of artworks can make determining a replacement value impractical or impossible.