The term "floater policy" is commonly used in the insurance industry to refer to a policy that covers movable property like jewelry or electronic devices. In IPA phonetic transcription, the spelling of "floater" is /fləʊtər/, with the stress on the first syllable. The spelling accurately reflects the pronunciation of the word, with the "oa" in the first syllable producing an "oh" sound that is followed by a schwa sound in the second syllable. Together, the sounds create the distinct pronunciation of "floater."
A floater policy, also known as a personal property floater or rider, is a type of insurance policy that provides coverage for specific valuable personal items that are not adequately protected under a standard homeowners or renters insurance policy. A floater policy is designed to protect highly valuable possessions such as jewelry, fine art, antiques, valuable collectibles, high-end electronics, and other high-priced belongings.
Unlike standard insurance policies, which usually have a limit on the coverage for personal property, a floater policy offers additional coverage that is specifically tailored to the value of the items it covers. This means that the policyholder receives full compensation for the loss or damage of the insured item, up to the appraised value, without having to worry about depreciation.
A floater policy can be added as an endorsement to an existing homeowners or renters insurance policy or purchased as a separate standalone policy. The policyholder typically needs to provide detailed documentation of the items being insured, such as appraisals, receipts, or photographs, for the insurance company to assess their value accurately.
It is important to note that a floater policy usually covers the insured items against a broad range of risks, including theft, loss, accidental damage, or even mysterious disappearance. However, certain perils, such as wear and tear, intentional damage, or acts of war, may be excluded from coverage, so it is crucial to carefully review the terms and conditions of the policy before purchasing it.
The word "floater policy" is composed of two primary terms: "floater" and "policy".
The term "floater" originated from the verb "to float", which means to stay or move on the surface of a liquid without sinking. In the context of insurance, a "floater" refers to a type of coverage that provides protection for movable or easily transportable items. Initially, the term was used to describe insurance coverage for goods transported over water, but it eventually expanded to include coverage for personal property like jewelry, electronics, and valuable items that can be easily moved.
The term "policy" traces back to the Latin word "polītīa", which meant "civil administration" or "citizenship". Over time, it evolved to refer to a written contract or agreement between an insurer and an insured individual or entity.