In insurance terminology, what does the term 'floater' mean?

The term 'floater' in insurance terminology refers to a type of insurance policy that provides coverage for specific valuable items, such as jewelry, art, or collectibles. Floaters are designed to protect individuals against risk beyond what standard homeowners or renters insurance typically covers. They offer more extensive protection, often covering loss due to theft, damage, or other specific perils, regardless of whether the item is at home or away.

This specialized coverage is particularly important for high-value items that may exceed standard policy limits or may not be covered at all under typical home insurance policies. Therefore, if a person has valuable possessions, obtaining a floater policy can ensure that they are fully protected against potential loss or damage to those specific items, making the concept of a floater integral to personal lines insurance.