What is the primary purpose of a Personal Property Floater?

The primary purpose of a Personal Property Floater is to provide open perils coverage for personal property. This type of insurance is designed to cover an individual’s belongings while they are away from their primary residence, as well as those items in transit. Unlike more traditional policies that might list specific perils—meaning they only cover damages caused by certain named risks—the open perils approach offers broader protection. This means that unless a specific exclusion applies, any risk of loss or damage to the personal property is covered.

This can be especially beneficial for individuals who have valuable possessions that are not adequately protected under a standard homeowners or renters policy. The flexibility and comprehensive nature of open perils coverage make it a vital financial safety net for personal property, especially when considering the various situations that might lead to loss or damage.

In contrast, other options focus on aspects that do not align with the intent of a Personal Property Floater, such as protection for real estate investments, insurance for corporate assets, and coverage for liability claims, which are more niche-specific coverage types.