What is a tools and equipment floater policy?
This type of coverage is written on property that is mobile in nature (job to job). It needs to be covered on its own policy form. Mysterious disappearance is normally not covered. There should be evidence of theft / visible signs of entry etc. The rate per hundred of coverage is generally higher for blanket coverage on smaller items. Scheduled items over a certain value carry a lower rate. Some insurers offer replacement cost coverage if the equipment is insured to replacement value. Most often the claim is adjusted at the time of loss on a depreciated basis (actual cash value). Actual cash value equals replacement cost less depreciation. An insured needs to review at least annually what is on the equipment schedule and appropriate value insured for the item. Be proactive in this regard.
