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.

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.