Definition - What does Floater mean?
A floater refers to an insurance policy that covers property that is easy to move. These policies typically provide additional coverage beyond the coverage already provided by normal insurance policies. In many cases, floater insurance covers various personal belongings such as jewelry, expensive stereo equipment, surgical equipment, agricultural equipment, etc.
Many people refer to floater insurance as equipment floater insurance.
Insuranceopedia explains Floater
Many homeowners take out mortgage loans for purchasing a home. To protect their interests if the house experiences destruction or damage, the lenders require the homeowners to purchase homeowner’s insurance. This insurance policy combines various personal insurance protections such as:
- The loss of the home
- The loss of the contents or belongings in the home
- The loss of use, i.e. additional living expenses
- The loss of specific personal possessions of the homeowner
- Liability insurance for accidents that take place at the home or at the hands of the homeowner
It is worth noting that homeowners' insurance might not provide coverage for certain items. In this scenario, people purchase floaters to protect the entire value of the items in case they get lost, damaged or stolen.
Floater insurance policies usually cover one specific item. Therefore, homeowners would need to purchase multiple floaters to obtain full coverage for several items that they wish to insure. For instance, if you have jewelry and some expensive equipment in your house, you’ll need to purchase two distinct floater insurances for each set of the items.