A floater policy is a type of insurance policy that provides coverage for multiple people or items. It is typically used for health or life insurance, but can also be used for property and casualty insurance.
A floater policy can be used to insulate an individual from the financial risks associated with insuring multiple people or items. For example, if an individual has a health insurance floater policy and one of the family members insured under the policy becomes sick, the individual may only have to pay a relatively small amount out of pocket for the medical expenses.
Additionally, afloater policy can be used to provide coverage in situations where a single policy might not be enough. For example, if an individual has a property insurance policy with a $100,000 limit and their home is worth $300,000, a floater policy can be used to provide additional coverage for the difference in value.
While a floater policy can provide some financial protection, it is important to note that the coverage is typically more expensive than a traditional insurance policy.