Floater Policy
What Does Floater Policy Mean?
A floater policy provides insurance protection for movable property and other items that are transported from one location to another, which are not typically covered by standard policies. In other words, it offers additional coverage for property that may not always remain within the insured location.
Insuranceopedia Explains Floater Policy
A floater policy insures movable items against transportation risks as well as other perils that may threaten the insured item at its destination.
Originally, it was a type of inland marine property insurance that covered personal property within the policy’s specified territory. Over time, floater insurance evolved into a separate type of coverage that provides additional protection for items not typically covered by a homeowner’s or standard property policy. Generally, a floater policy covers a single item, so if a person needs to insure multiple items, they may need to purchase a separate floater policy for each one.
