Introduction
A floater is a type of insurance policy provision that covers property or assets that are easily movable or transportable. It provides coverage beyond the limits of a standard insurance policy and is typically used to insure items such as jewelry, fine art, valuable collections, and portable electronic devices.
Types of Floaters
- Jewelry Floater: This type of floater provides coverage for valuable jewelry items that may not be adequately covered by a standard homeowner’s insurance policy.
- Fine Art Floater: This type of floater provides coverage for expensive art pieces that may not be covered or fully covered by a standard insurance policy.
- Valuable Collections Floater: This type of floater provides coverage for valuable collections such as coins, stamps, or antiques that are not adequately covered by a standard insurance policy.
- Electronic Devices Floater: This type of floater provides coverage for portable electronic devices such as laptops, tablets, and smartphones that may not be fully covered by a standard homeowner’s insurance policy.
Benefits of Floaters
Floaters offer several benefits compared to standard insurance policies. They provide coverage for specific items that are highly valuable or irreplaceable, offering peace of mind to policyholders. Floaters also typically have higher coverage limits and may provide coverage against a wider range of risks and perils.
Case Studies
For example, a homeowner who owns a valuable diamond necklace may choose to purchase a jewelry floater to ensure that the item is adequately covered in case of loss, theft, or damage. Without a floater, the homeowner may not receive full compensation for the necklace’s value.
Statistics
According to a study by the Insurance Information Institute, floaters are becoming increasingly popular among consumers who want to protect their high-value assets. The study found that sales of floaters have been growing steadily in recent years, indicating a growing awareness of the need for specialized insurance coverage.
