What is floater policy in insurance?
The term, "floater" generally refers to a policy that is issued
to cover specific, high value items.
Ordinarily, a homeowners policy, for example, provides only a
fixed and limited amount of coverage for all jewelry, and a lower
amount for any particular item of jewelry. If you have an item that
is worth more than the item limit of the policy, you can insure it
for its full value by insuring it on a floater. You will pay a
separate premium for that policy, and it may be issued by a
different insurer.