Glossary
Floater, defined
A form of property coverage that follows specific items wherever they go, rather than insuring them only at a fixed address. The name comes from marine insurance, where cargo floated from port to port; a scheduled personal property floater or an inland marine floater does the same on land for jewelry, cameras, tools or equipment.
In practice
Personal floaters attach to a home or renters policy and list each item with an agreed value, usually backed by an appraisal or receipt. They typically insure against open perils, including mysterious disappearance, and carry no deductible, which is why a scheduled ring is covered when it slips off in a lake while the base policy would not respond. Commercial floaters do the same for a contractor's tools, a photographer's kit or leased equipment on a jobsite. The trade-off is that a listed item is insured at the scheduled amount only; if the appraisal is ten years old the payout may be short. Schedules should be revisited when values move.
A worked example
Suppose a couple schedules a $9,000 watch on a personal articles floater. On a trip the watch is lost somewhere between the hotel and the airport. Their home policy's contents coverage would deny an unexplained loss and, even for theft, would cap jewelry at a low sublimit. The floater pays the $9,000 scheduled value with no deductible. Hypothetical figures, to show why the schedule exists.
Applies to: Home InsuranceContractors Insurance