State Farm Insurance License Practice Exam

What does a floater insurance policy cover?

1. Property damaged by natural disasters

2. Only immovable property on home premises

3. Easily movable personal property

4. Commercial assets exclusively

The correct answer is: Easily movable personal property

A floater insurance policy is specifically designed to provide coverage for easily movable personal property. This type of policy is beneficial for individuals who own valuable items that may not be adequately covered by a standard homeowner's insurance policy. Items such as jewelry, artwork, cameras, and electronics, which can be transported from one location to another, are common examples of what a floater policy covers. While standard homeowner's policies typically have limits or exclusions for expensive personal property, a floater allows for a more comprehensive level of coverage, often without a deductible. This is particularly important for valuable goods that could be damaged or lost in transit or outside the home. Other options focus on different types of coverage. Flood or disaster insurance generally does not fall under the category of a floater policy. Instead, that would relate to specific perils impacting immovable structures. Likewise, coverage that includes only commercial assets or immovable property is not aligned with the intent and design of a floater policy, which is all about personal movable assets.