Jewelry Floater

What Does Jewelry Floater Mean?

A jewelry floater is an optional add-on to a homeowner’s insurance policy that covers jewelry items that would not otherwise be protected under the standard policy.

Homeowner’s insurance typically provides coverage for property theft; however, it often excludes jewelry or limits the coverage amount for these items. Policyholders who wish to protect their valuable jewelry or increase the coverage limit can do so by purchasing a jewelry floater. Sub-limits on jewelry inside a standard policy are often low enough that a single ring or watch can exceed them, so checking the fine print on how homeowners insurance handles theft is worth doing before assuming you’re fully covered.

Insuranceopedia Explains Jewelry Floater

For insurance purposes, “jewelry” is defined as personal ornaments made of precious metals and of significant value. As a result, jewelry floaters don’t typically provide coverage for items made of materials like glass or low-cost jewelry.

If the policyholder does not have receipts to verify the jewelry’s value, many insurers require an appraisal before adding a jewelry floater to an insurance policy. Knowing the approximate value of the jewelry enables insurers to assess the risk of coverage and set a premium that reflects this level of risk. Floater pricing and the maximum amount each insurer will write also vary, which is one of the things to compare when looking at the best homeowners insurance companies.