Updated on October 4, 2023
A floater policy, also known as a “floating policy” or “umbrella policy,” is a type of insurance policy that provides coverage for multiple items or individuals under a single policy. It is commonly used in health and property insurance to cover multiple family members or various assets with a single policy, making it a cost-effective and convenient option for policyholders.
What are the types of floater plans in India?
A few popular floater plans in India are,
Family Floater Health Insurance – One of the most common types of floater policies in India, it covers all family members under a single policy, ensuring that medical expenses are shared among family members. If one family member needs medical care, the coverage can be utilised from the common pool.
Home Insurance Floater – In property insurance, a floater policy can cover multiple assets within a home, such as a furniture, appliances, jewellery, and electronics, under a single policy. This offers comprehensive protection against various risks, including theft, fire, and natural disasters.
Personal Accident Floater – This type of floater policy provides coverage for accidents involving multiple insured individuals, such as a family, in the event of injuries, disability, or death resulting from an accident.
What are the benefits of Floater Policies?
Simplicity – Managing a single floater policy is more convenient than dealing with multiple individual policies. It simplifies the insurance process.
Cost Savings – Floater policies often come with lower premiums compared to insuring each item or individual separately, making them cost-effective.
Comprehensive Coverage – Floater policies provide comprehensive coverage, ensuring that all insured entities are protected against various risks.