Do you have a floater on your renters insurance plan? For many people, this term isn’t familiar, but it may be an important addition to your renters insurance policy. A floater is simply an additional level or layer of insurance that adds more coverage or specific coverage to your plan. On a standard renters insurance policy, floaters can help to protect against what the basic plan does not. And it can add a higher claim limit as well. In short, it gives you more protection. Who needs this type of coverage?

What Your Standard Policy Covers

A standard renters insurance policy will cover protection for most of your assets from perils such as fire, theft and vandalism. It also provides a level of liability insurance to cover accidents that may occur on your property by visitors. However, the policy will have a limit on how much it provides. If, for example, your policy has a theft limit of $2,500, anything beyond that is not covered.

How Floaters Can Help You

For many renters, having the basic level of insurance is simply not enough. Here are a few reasons why you should upgrade your existing policy:

• You have highly valuable assets. This may include collectible items, jewelry, highly valuable electronics or other items. If these items have a high value, they may be higher than that of your claim limit. Protecting specific items is often necessary.
  
  
• You want to reduce the liability risks you face at a higher level. Liability insurance on many renters insurance plans is minimal. Yet, if a child is hurt while visiting you, those bills could amount to thousands of dollars worth of loss.

It can be a good idea to talk to your insurance company about your need for a higher amount of coverage. For many people, renters insurance is very inexpensive. As a result of this, it may simply make sense to purchase a floater to add another layer of protection especially when it may be inexpensive to do so. For more peace of mind and financial protection in the biggest risk situations, consider the various reasons you should raise your limit through a floater policy. By doing so, you may inexpensively be able to protect from a higher level of risk.