What is an example of a common floater?

A common floater is a type of insurance policy that provides coverage for specific types of personal property, often at locations other than the insured's primary residence. This policy is designed to cover items that may not be adequately protected under a standard homeowners policy due to their high value or the risk of loss being higher when not at the insured location.

Wedding presents serve as a prime example of a floater because they are typically high-value personal belongings that homeowners may receive at their wedding and might not be fully covered under a standard homeowners insurance policy. Since wedding presents might be removed from the home immediately after the event, they can be at risk for loss or damage during this time. Therefore, using a floater to insure these items ensures that they are covered regardless of their location.

In contrast, mobile home insurance is a specific type of insurance related to the dwelling itself rather than movable personal property. While a fine art collection may also require additional coverage, it is not as universally recognized as a “common floater” compared to wedding presents. Property in storage is also relevant but lacks the same frequency and specific categorization of risk that makes wedding presents a clear example of a floater.