Floater insurance is an insurance product designed to cover easily movable personal property not included in standard insurance policies. This product is usually available from the same company or agency used to purchase other insurance and people may be able to get a discount or bundled deal by purchasing insurance from the same source. Floater insurance is recommended for people with valuable movable property like jewelry, electronics, and antiques.
Standard insurance policies for homes and businesses generally do not cover movable personal property, because such property is more prone to loss or theft. If belongings are stolen, damaged, or destroyed, people cannot receive compensation from the insurance company, although the insurance will cover loss of structures and may also extend to appliances, depending on the terms of the policy. Floater insurance is used to address this gap in coverage, for safety.
Generally, floater insurance policies are written for specific items, rather than being provided as blanket coverage. The item is described in detail when the policy is originated and the insurance agrees to cover it for a reasonable value. People who want to cover multiple items will need to generate policies for each item, and will pay separately for the coverage. When buying floater insurance, it is important to consider which items are most in need of coverage, as the costs for individual policies can get expensive.
Typically, a premium is charged for floater insurance and if it is not paid, the insurance lapses. There may also be a deductible, depending on the terms of a policy. It is advisable to review policies carefully to understand the circumstances when coverage will be provided or denied, and copies of the policy should be kept in a safe place along with other records pertaining to the covered item, such as photographs and documentation.
An insurance company may offer a package deal if people purchase floater insurance at the same time they open up a policy for property insurance or other insurance needs. People can ask about any special offers available at the time they originate a new policy, as this is often the time to get the best deals. It is also perfectly acceptable to ask for quotes from multiple insurance agents or companies to get an idea of the available rates. Some agents may be empowered to negotiate and can discount insurance if people approach them with a lower quote from another agent.