What is a floater?
A floater is a type of insurance policy that covers one specific piece of personal property. It is known as a floater because it tends to cover items that are easily moveable or transportable, which makes the item more likely to become damaged or stolen than if it were to stay in one secure location. Floaters are used in both commercial and home insurance and are not unique to homeowners.
In the context of home insurance, floaters are commonly purchased for jewelry or artwork. Under your basic homeowners insurance policy, you have very limited coverage for valuables that are easily transportable due to the high risk of loss to such items. This will usually be items such as jewelry, furs, artwork, antiques, and electronics.
If you wish to insure these items to their full value, you will need to purchase a floater for each item that specifies the value. Additionally, highly valuable items may require you to secure a certified appraisal for the insurance company to agree on a replacement value. While this may seem cumbersome, it will save a lot of hassle in the event of a claim.