OVERVIEW OF THE ISO PERSONAL INLAND MARINE PROGRAM

(March 2018)

Inland marine coverage is one of the insurance industry’s oldest forms of insurance. Personal Inland Marine (PIM) refers to forms that insure classes of personal property having several characteristics. First, such property is subject to minimal (or no) coverage under an unendorsed homeowners policy. Second, the property has very high value, particularly in proportion to its size. Property that is routinely covered by PIM is quite vulnerable to loss or destruction, is particularly targeted by thieves and, finally, has a higher likelihood to be the subject of fraudulent claims.

The Insurance Services Office (ISO) Personal Inland Marine Program includes a variety of policies designed to provide various levels of direct physical loss coverage to personal property.

POLICY CONSTRUCTION

ISO Personal Inland Marine coverage is provided by issuing the following:

· Applicable Insurer’s Declarations

· Common Provisions

Related Article: Common Policy Provisions

· Applicable ISO Personal Inland Marine Base Policy Form(s)

PM 00 09–Personal Articles Standard Loss Settlement Form
PM 00 10–Personal Articles Agreed Value Loss Settlement Form

PM 00 11–Jewelry and Furs

PRINCIPAL COVERAGES

Owned Property—this portion of the policy protects the property described in the base form’s schedule and is, typically, also defined within the policy.

Newly Acquired Property—protection is granted to property that is acquired within a specified time frame during the applicable policy period. Such property is similar to the covered property as defined in the applicable base coverage form.

Replacement Property—protection is also granted to property that is similar to the defined covered property. Coverage applies only when such property is acquired as a replacement to previously owned property.

AVAILABLE ENDORSEMENTS

Many endorsements are available to tailor a Personal Inland Marine policy.

PERSONAL ARTICLES VS PERSONAL EFFECTS

Personal Articles—Personal articles are classes of property owned by individuals that are often used in close proximately to persons but which are also types that tend to be collected since they usually appreciate in value over time or are otherwise highly desirable. They also usually contain a high level of value in relationship to their physical size and are fragile, so are easily damaged or lost. These factors make them a higher risk to insure. The personal property coverage under a homeowners policy may provide coverage, but it is likely to be minimal or with serious coverage restrictions, so proper coverage is usually only attained by acquiring separate protection at a separate cost (premium).

Both the PM 00 09 Personal Articles Standard Loss Settlement Form and the PM 00 10, Personal Articles Agreed Value Loss Settlement Form can be used to provide coverage for combined classes of personal articles. When either of these forms is used the individual class coverage forms are not to be attached. Although the rules state that any class can be added to either the PM 00 09 or the PM 00 10, the following classes are specifically listed:

Cameras	Coin Collections	Furs
Jewelry	Golfers’ Equipment	Musical Instruments
Stamp Collections	Fine Arts	Silverware

Personal Effects—Personal effects are classes of property owned by individuals that are often used in close proximately to persons but which do not typically appreciate in value or which are collected as a hobby or as investment property. The personal property coverage under a homeowners policy are fully capable of covering such property except in limited circumstances, such as when there is no eligible, accompanying residential situation, such as retired persons living in a nursing facility, persons living in RVs or who are living outside an insurer’s territory (such as tourists). In such instances, personal effects coverage acts as an alternative source of protection against damage or loss to property such as:

Cameras (lower-valued, personal/tourist use)	Instruments (recreationally used)	Watches
Jewelry (frequently worn, wedding bands, engagement rings, costume jewelry)	Items with cultural or religious significance to the owner	Books (recreationally used)
Clothing	Sports equipment	Toiletries
Personal care items
Items needed because of an owner’s physical or medical condition, such as the following:
Hospital Beds	Wheelchairs	Walkers
Canes	Prosthetics	Medical equipment