Floaterinsurance

Key Takeaways

• Floater insurance provides additional coverage for easily movable personal property not fully covered by standard homeowners policies.
• A floater policy typically covers one specific item, requiring a detailed description and professional appraisal.
• Common items covered by floater insurance include fine art, jewelry, cameras, and sporting equipment.
• Homeowners can also increase existing policy liability limits as an alternative to purchasing separate floater policies.
• Floater insurance protects items from loss, theft, or damage, including types not covered by standard homeowners insurance.
• Get personalized, AI-powered answers built on 27+ years of trusted expertise.

What Is an Insurance Floater?

Floater insurance is a type of insurance policy that covers easily movable personal property. A floater provides additional coverage beyond the standard coverage from homeowners insurance policies. Also known as a personal property floater, it can cover anything from jewelry and furs to expensive stereo equipment.

Understanding Floater Insurance Coverage

Homeowners insurance typically includes coverage for all perils in your policy, such as fire, windstorm, theft, and vandalism. The coverage also extends to jewelry and other precious items like watches and furs. However, jewelry and other small valuables are easily stolen, posing a higher risk to the insurer.

As a result, insurance companies usually place limits on the dollar amount of coverage for certain valuables. These limits help keep a standard homeowners policy affordable and usually provide about $1,500 in coverage for personal valuables. In other words, the insurer won’t pay more than this established dollar limit for each item.12

If you want full coverage, you must buy a floater policy—also called a personal article floater. The floater assures the homeowner will receive the full value when replacing the item in the event of theft, loss, or damage. These policies generally cover one individual item with a detailed description. If you have several items for which you want full coverage, you must buy a floater for each one.3

Floater insurance typically covers the following:

Fine Art: Antiques, books, china, crystal, collectibles, fine arts, furniture, glass, lithographs, mirrors, rugs, tapestries, paintings, pictures, sculptures, and silverware

Firearms: Both antique and modern

Jewelry: Necklaces, earrings, rings, luxury wristwatches, and more

Cameras: Cameras of any type, projectors, and audio-visual equipment for personal use only, not professional use

Sporting Equipment: Golf clubs, surfboards, tennis racquets, or other types of equipment for personal use only

Musical Instruments: Pianos, guitars, electronics, and other types of music equipment for personal use only

Postage Stamps: Postage stamps and related items

Collections: Collectible coins (including gold and silver), baseball cards, comics, LPs and CDs, and other collections

If you have an outstanding mortgage loan, your mortgage lender will require you to buy a standard homeowners insurance policy but will not require you to purchase a floater for your personal valuables.

$1,500

Homeowners insurance policies usually offer a $1,500 coverage limit for jewelry and other small valuables.1

Important Considerations for Floater Insurance

If you own costly items like jewelry or collectibles, there are two ways to increase your insurance coverage.

Floater Policy

A floater policy requires you to list your valuables for the best protection. Floaters cover all loss types, even those not under homeowners insurance, like losing a ring or camera. Before you can purchase a floater, items intended for coverage must be appraised by a professional.

Reassess your floater policies and appraise items every one to three years to keep valuations current. Also, be sure to add new purchases, such as birthday and holiday gifts.

Raised Liability Limits

Raising liability limits can be cheaper than buying a floater for each valuable item. However, coverages are limited for both individual pieces and overall losses. For example, the coverage limits for an individual item could be $2,000, with a total limit of $5,000.2

Real-Life Example of Floater Insurance Application

Susan bought a $50,000 piece of jewelry and decided to get floater insurance for protection.

A reputable jeweler appraises the jewelry to confirm its value and authenticity. Subsequently, the insurance company puts a premium price on the item of 1% of its assessed value, or $500.

Two claim types exist: one covers repairs, and the other replaces the item at actual value. Because jewelry value does not depreciate with time—and can increase in some cases—the insurance company establishes a cap on the amount they will pay Susan in either case.

Frequently Asked Questions (FAQs)

What Is a Floater Rider Insurance Policy?

A floater is insurance coverage added to an existing policy. Coverage under a standard homeowners policy might be inadequate for expensive personal valuables like jewelry. A floater extends coverage to cover the full value of the item. Floaters are also called riders or endorsements.

How Much Coverage Do Homeowners Insurance Policies Provide for Jewelry?

A standard homeowners policy typically limits the coverage of personal valuables, like jewelry, at $1,500 per item.

How Can I Get Insurance Coverage for the Full Value of Personal Valuables?

Besides buying a floater policy that extends the amount of coverage for each valuable item, you can contact your insurer to increase your existing homeowners insurance limits for personal items. However, your monthly insurance premiums will increase as a result.