floating policy
Học thuậtThân thiện
Definition
Noun: A type of insurance contract that provides coverage for movable property, such as jewelry, art, or valuable collections, wherever the property is located. The coverage is not fixed to a single address but "floats" with the insured items.
Usage
A floating policy is used to insure items that are frequently moved or used in different locations. It is common for valuable personal property that the owner carries with them.
Examples
- The traveler purchased a floating policy to insure her expensive camera and laptop during her trip around the world.
- His floating policy covers his wife's jewelry whether she is wearing it at home, at an event, or while traveling.
Advanced Usage
- Blanket Coverage: A floating policy often acts as blanket coverage for a class of items (e.g., "all fine art" or "all musical instruments") up to a total limit, rather than listing each item individually.
- Scheduled vs. Floating: Unlike a scheduled policy that lists specific items at specific locations, a floating policy offers more flexible, location-independent protection for movable assets.
Variants and Related Words
- Floater (noun): A common informal term for a floating policy.
- He added a floater to his homeowner's insurance for his new watch.
- Personal Articles Floater (PAF) (noun phrase): A specific type of floating policy for high-value personal items.
Synonyms
- Personal property floater
- All-risk personal property insurance (in some contexts)
Notes
This term is specific to the insurance industry. The key concept is the mobility of the insured property and the flexibility of the coverage location.
Noun
- an insurance policy covering loss of movable property (e.g. jewelry) regardless of its location