Obtaining a homeowner's insurance policy that fully protects you is important if you want the security of knowing everything you own is insured, but there is a chance that your current policy might not be covering everything you own. This is why you should learn about floaters, as these are common with homeowner's insurance policies, and here are several things to know about floaters on your insurance policy.
What is a floater?
When you purchase insurance for your home, it will provide coverage for the structure of your home along with the things you own inside the house. Many people are under the assumption that this means that they would receive compensation for everything they own in their home if everything was destroyed, but this is not the case. There are probably some items in your home that would not be covered under your insurance policy, even if they were stolen or destroyed, and this is why you might need a floater.
A floater is an endorsement, or an add-on, to your existing home insurance policy that covers a specific item you own. You can purchase a floater for anything you own that is not currently covered under your policy, and this means that you may need to purchase multiple floaters if you want to be fully protected.
Why might you need them?
If you are not sure if you need floaters on your policy, you should carefully think about what assets you have in your house. Do you have any expensive coins in your safe? Do you own expensive jewels, diamonds, or gemstones? Do you have a valuable musical instrument collection? If you have anything like this, or anything that is worth a lot of money, you most likely need floaters for these items. You can contact an insurance company about this if you have questions, and they will be able to tell you whether or not you need floaters on your policy.
When you own things like this, you might receive some compensation from your insurance company if they are destroyed, even if you do not have floaters. The important thing to understand is that you may receive compensation, but you probably will only receive a small amount of the actual value of the item. With a floater, you can receive the full value if the item is destroyed.
If you think that you may need some floaters on your policy, contact a home insurance company and ask them. They can tell you if you should purchase them or not, and this will help you fully protect yourself.