What are floaters in the context of insurance?

Floaters in the context of insurance specifically refer to added coverage for property that has a high degree of mobility. This type of insurance is particularly useful for items that are often moved away from the insured's primary residence or that are not adequately covered under standard homeowners or renters policies. Examples include jewelry, art collections, and high-value electronics, which can be at risk of loss or damage when not stored in a fixed location.

The concept of floaters allows policyholders to insure these valuable items individually, often at a higher coverage limit than what standard policies provide. This specialized protection ensures that even if the item is lost, stolen, or damaged while being transported or used away from home, the insured will have recourse for replacement or repair. Overall, floaters enhance the protection of high-value property significantly, making them an essential consideration for individuals with mobile or valuable possessions.