Floater Insurance: How It Works and Who Needs It (2024)

Floater insurance is known by a few names. It can also be termed personal article floater, personal property floater, jewelry floater, scheduled personal property endorsement, valuable property rider, valuable item home insurance rider, or personal property rider.

We’ll list the typical personal property limits of standard home insurance, provide examples of items that could use floaters insurance coverage, and note the benefits of having an insurance floater.

Read on to find out more and to get quotes.

Why isn’t floater insurance a standard part of my house insurance?

Typical homeowners insurance coverage does protect your home’s contents from damage or theft, but only up to a certain limit.

It may be that there is some level of basic protection in your household insurance that operates in a similar way to floater insurance; this is normally for low value items that may be lost from garden sheds, porches, etc.

In the case of simple instances of loss it is often not worth claiming under your insurance for this because the increased premiums when you renew would probably consume much of the value of replacement.

However, this is for low value items only. High value items which are easy to transport represent a much higher level of risk for your insurer and these items vary from household to household, making it impossible for insurers to determine the precise level of risk involved for any particular policy owner or purchaser.

Some common limits in a standard homeowners insurance policy include:

• Coins: $1,000
• Furs: $2,500
• Guns: $2,500
• Jewelry: $2,500
• Silverware: $250
• Stamps: $1,000

If you have high-value items that exceed the amount limits above, a standard homeowners insurance policy won’t cover these valuable items.

And don’t forget about the deductible.

For example, what if your diamond engagement ring that’s worth $7,500 was stolen? A standard homeowners insurance policy would only cover up to $2,500 minus your $1,000 deductible. So receiving only $1,500 for an item worth $7,500 is far from ideal.

Read more: Insurance-to-Value (ITV) Ratio: Homeowners Insurance Terms Explained

What items could possibly need floater insurance?

A floater insurance policy could be applied easily to items like expensive jewelry, which may not be covered when worn outside of the home or in specific circumstances like when it is placed in a locker at a gym.

Floater insurance could also apply to collections.

One instance is a record collection may not be covered under your normal policy if it is worth in excess of a certain threshold in total or if individual items are considered to be more valuable than a newly bought replacement. For example, this could be an album released on one label which has since moved to another where it has become very popular.

Other items in which you may have an interest in looking into floater insurance:

• Antiques
• Artwork
• Cameras
• Furs
• Guns
• Musical instruments
• Silverware
• Sport equipment

Jewelry and furs are the most popular items when it comes to floater insurance. And floater insurance is a common option available from top insurance providers.

For example, see details in our articles Does Allstate homeowners insurance cover jewelry?, Does Nationwide home insurance cover jewelry?, and Does State Farm homeowners insurance cover jewelry?

How much floater insurance do I need for my possessions?

Only you can ascertain how much insurance coverage you need and you should speak to an insurance agent, broker or broker-agent to discuss your specific requirements and appropriate level of coverage. The rates or cost of a floater insurance policy is usually at least 50 cents per $100 value but will vary by location and other factors. 

It’s best to have your item or items appraised by a certified appraiser. That way you can ensure you have the proper amount of additional coverage.

It is worth noting that you usually need one floater insurance policy for every item you want to ensure you will need one policy for an expensive bicycle for example and another for a top of the range camera and potentially multiple policies to cover items of jewelry.

When you’re looking into floater insurance, consider factors such as the coverage limit, deductible, and any exclusions or limitations. You should also review the policy terms and conditions carefully to ensure you understand what is covered and what is not.

Additionally, it’s a good idea to shop around and compare insurance quotes online as well as compare policies from multiple insurance providers to find the best coverage at an affordable price.

We hope we have sufficiently answered the question, “What is floater insurance?” for you, so that you now have a handle on an additional option to insure your personal property.

Read more:

• Home Insurance: A Complete Guide
• Best Renters Insurance:  A Complete Guide