Floater Policy

What Does Floater Policy Mean?

A floater policy provides insurance protection for movable property and other items that are transported from one location to another, which are not typically covered by standard policies. In other words, it offers additional coverage for property that may not always remain within the insured location. A common reason people buy one is to cover jewelry and other valuables that exceed the sub-limits on their home or rental policy, which is the same gap discussed in our guide on whether renters insurance covers jewelry.

Insuranceopedia Explains Floater Policy

A floater policy insures movable items against transportation risks as well as other perils that may threaten the insured item at its destination.

Originally, it was a type of inland marine property insurance that covered personal property within the policy’s specified territory. Over time, floater insurance evolved into a separate type of coverage that provides additional protection for items not typically covered by a homeowner’s or standard property policy. When the coverage applies to someone’s personal belongings rather than goods being shipped commercially, it’s usually sold as a personal property floater, which is added to a homeowners or renters policy as an endorsement. Generally, a floater policy covers a single item, so if a person needs to insure multiple items, they may need to purchase a separate floater policy for each one.