Definition - What does Floater Policy mean?
A floater policy is insurance protection that covers movable property and other items moved from one place to another and not usually covered by standard policies. In other words, it is additional coverage from property that may not necessary remain at all times in the covered property.
Insuranceopedia explains Floater Policy
A floater policy insures the movable item against transportation perils as well as other perils that may put the insured item at risk at its destination.
It used to only be a type of inland marine property insurance that insured personal property within the territory agreed in the policy. Later on, floater insurance became a separate type of insurance that provides additional coverage to items not usually covered by a homeowner’s or standard property policy. Usually, a floater policy generally covers one individual item. Thus, if a person needs to insure several items, they may need to buy a floater policy for each item.