What Does Jewelry Floater Mean?
Jewelry floater is an optional add-on to a homeowner's insurance policy that covers jewelry that would not otherwise be covered by the policy.
Homeowners insurance provides coverage for property theft. However, they will usually either exclude jewelry from the coverage or limit the amount of coverage for jewelry. Policyholders who wish to cover their valuable jewelry or increase the coverage limit on them can do so by purchasing a jewelry floater.
Insuranceopedia Explains Jewelry Floater
For the purposes of insurance, "jewelry" is defined as personal ornaments made of precious metals which are of considerable value. Jewelry floaters, then, don't always provide coverage for jewelry that is made of materials such as glass or low-cost jewelry.
If the policyholder does not have receipts available attesting to the value of the jewelry, many insurers will require the jewelry to be appraised before adding a jewelry floater to an insurance policy. Knowing the approximate value of the jewelry allows insurers to assess the risk of insuring the jewelry and calculate a premium that reflects this level of risk.