Floater
What Does Floater Mean?
A floater is an insurance policy that covers property that is easily movable. These policies often provide additional coverage beyond what is offered by standard insurance policies. Floater insurance typically covers various personal belongings, such as jewelry, high-end stereo equipment, surgical tools, agricultural machinery, and more.
Often, floater insurance is also referred to as equipment floater insurance.
Insuranceopedia Explains Floater
Many homeowners take out mortgage loans to purchase a home. To protect their interests in case the house is damaged or destroyed, lenders require homeowners to obtain homeowner’s insurance. This insurance policy typically combines various types of personal protection, including:
- Coverage for the loss of the home
- Coverage for the loss of contents or belongings in the home
- Coverage for additional living expenses (loss of use)
- Coverage for specific personal possessions of the homeowner
- Liability insurance for accidents that occur at the home or due to the homeowner’s actions
It’s important to note that homeowner’s insurance may not cover certain items. In such cases, people often purchase floaters to fully protect these items against loss, damage, or theft.
Floater insurance policies generally cover a single item, so homeowners would need to purchase multiple floaters to insure several items. For example, if you have jewelry and expensive equipment in your home, you would need to buy two separate floater policies to cover each set of items.
