This is coverage that floats on top of the regular policy. It changes the limits of the policy. You might float a Rolex watch, Ping golf clubs or Doulton figurines on your personal property policy. The insurance company can require appraisals for amounts valued $5,000 or more and require that these appraisals be renewed every five years or so. If you are not required to produce appraisals you will need receipts or other documentation at time of a claim.

A business insurance policy can have a floater for an item such as tools. This does not mean that the coverage floats from one location to another. If you have three trucks that all carry tools and equipment then the floater needs to be for the total amount on all three trucks. If you fail to adequately insure the tools then at the time of a claim you will face a large co-insurance penalty.

Floaters have a certain premium and this can vary from one company to another. It is important that you consider what you want to insure and then talk to your agent or broker to be sure that is what you have insured.