PERSONAL INLAND MARINE · 6 MIN READ

Floater Exclusions and Condition Warranties

Open-perils does not mean all perils. Every personal inland marine form carries a core set of exclusions aimed at non-fortuitous loss. Wear and tear excludes gradual deterioration from ordinary use. Inherent vice — a foundational inland marine concept — excludes damage caused by a quality intrinsic to the property itself: unstable pigments that fade in sunlight, dyes that bleed in furs, organic materials that decompose, metals that self-corrode. Pre-existing damage is excluded too, because the policy insures only fortuitous loss occurring during the policy period; undisclosed prior damage can also support rescission for material misrepresentation. Category-specific exclusions follow the same logic: fine arts schedules typically exclude breakage of fragile articles unless caused by listed perils, furs schedules exclude damage by moths and insects, stamp and coin floaters exclude fading and transfer, and computer floaters exclude viruses, mechanical breakdown, and unscheduled data. The exam loves the boundary between an excluded cause and its covered consequence. A worn prong on a ring is excluded maintenance loss — but the diamond that falls out and disappears because the prong failed is a covered accidental loss. Learn to separate the gradual process (excluded) from the sudden resulting loss (covered). Specialty collection floaters add condition warranties, which are stricter than ordinary policy conditions. A wine collection floater may warrant storage at 55-58 degrees F and 60-70 percent relative humidity; fine arts schedules may warrant climate control; others warrant operating alarms or vault storage for high-value pieces. Warranties are strictly construed: a material breach can void or sharply reduce coverage even if the breach did not cause the loss, which is why continuous, documented compliance matters. Theft from an unattended vehicle is another commonly excluded or restricted scenario to watch for.