Texas All Lines Adjuster Practice Test

What type of policy is a "floater" associated with?

1. Homeowners insurance

2. Health insurance

3. Inland Marine policies covering mobile property

4. Automobile insurance

The correct answer is: Inland Marine policies covering mobile property

A "floater" policy is specifically associated with Inland Marine policies that cover mobile property. This type of policy is designed to provide protection for movable or transportable items, such as jewelry, art, equipment, and other personal belongings that may not be adequately covered under a standard homeowners policy. Floaters allow for coverage that extends beyond the limitations of traditional policies, addressing the unique risks associated with items that could be in transit or located away from the insured premises. Inland Marine policies are regarded as a segment of property insurance, which originally stemmed from marine insurance that covered goods transported over water. As such, these policies have expanded to cover items that can be moved from one location to another, making them suitable for individuals who possess valuable portable items. The other types of policies mentioned—homeowners insurance, health insurance, and automobile insurance—serve different purposes and do not encompass the specialized coverage that a floater policy provides. Homeowners insurance typically covers belongings within the home but has certain limitations for high-value items. Health insurance deals with medical expenses and does not relate to property coverage. Automobile insurance is specifically for vehicles and does not include the portable personal items that floaters protect.