If a personal articles floater covers a musical keyboard valued at $1,000 and it is stolen while traveling, what would the policy likely pay?

In the context of the personal articles floater coverage, it's essential to understand how such policies operate. A personal articles floater typically provides specialized coverage for personal property on a broader basis than standard homeowners policies, often covering items that are valued separately.

If a musical keyboard valued at $1,000 is stolen while traveling, the policy would generally pay the actual cash value of the item at the time of loss. The actual cash value takes into account any depreciation that may have occurred since the item was purchased. If the keyboard has depreciated, the insurance payout reflects this reduced value, which is often calculated as the current market value rather than the original purchase price.

In this scenario, if the policy pays $750, it suggests that the calculation of actual cash value considered depreciation and arrived at this figure as what the item is worth at the time of the theft. Consequently, the coverage pays a value lower than the original price due to depreciation, fitting the scenario described where the item was stolen.