What is a Floater?
A floater is an insurance policy provision that allows for coverage of property that may be moved from one location to another. It is specifically designed to provide insurance for valuable items that are not covered under a standard insurance policy due to their high value or portability.
Types of Floaters
There are various types of floaters that are designed to provide coverage for different types of property. Some common types of floaters include:
- Jewelry Floater
- Art Floater
- Musical Instrument Floater
- Fine Arts Floater
Examples of Floaters
For example, if you have a valuable piece of jewelry such as an engagement ring or a watch, you may obtain a jewelry floater to ensure that it is adequately covered in case of loss or damage.
Case Studies
One case study involves a homeowner who had a valuable art collection. The homeowner obtained an art floater to provide coverage for the collection, which was not adequately covered under their standard homeowner’s insurance policy. When a fire broke out in their home and damaged the art collection, the homeowner was able to file a claim under the art floater for reimbursement.
Statistics on Floaters
According to a recent study, only 20% of homeowners have floaters to cover high-value items such as jewelry or art. This means that the majority of homeowners may not have adequate coverage for their valuable possessions in case of loss or damage.
