Installation Floater Coverage
Installation floater insurance protects materials and supplies that will be installed at a project but that are currently in the possession of a contractor. It typically covers materials during transit, in storage at temporary locations or at the jobsite awaiting installation and materials in the process of being installed. It covers the property when you take possession of it until the installation is complete.
FAQs
Installation floater vs builder’s risk
A builder’s risk policy provides coverage for a structure being built from the ground up or being renovated, while an installation floater is designed to cover specific items being installed, fabricated or erected by a contractor. Builder’s risk policies cover all parties involved in a construction project (owners, general contractor and subcontractors) but in contrast, an installation floater only covers the contractor that will be installing certain materials at the jobsite.
Installation floater vs property coverage
Property insurance covers property you own while installation floater insurance covers property you do not own but that you are legally liable for. Additionally, property coverage is intended to cover items at your permanent location while installation floater coverage protects items at temporary locations and in transit.
Claims examples
General contractors and specialty trade contractors are often in possession of materials and supplies that will be installed at a job site. A lot can happen between the time you take possession of the item to the time it is permanently installed.
- A glass contractor has special ordered a large piece of custom glass for a customer’s bathroom remodel. The glass is transported safely to the jobsite but while the contractor is installing the glass in the bathroom, they accidentally crack it. Since the crack cannot be repaired, a new piece of glass must be custom made and ordered.
- An electrical contractor has purchased a large chandelier for a client and will be installing it in the client’s new home. The electrician places the item on their work vehicle for transportation to the jobsite but during the drive they hit a large pothole and the chandelier falls of the back of the vehicle.
- A plumbing contractor is storing several high end sinks at a temporary storage location until they are ready to be installed on the jobsite. An intruder breaks into the storage location during the night and steals the sinks.
Exclusions
While each installation floater is different, most policies exclude damage to materials that are in air transit, waterborne or that are being worked on underground. It does not cover damage to property after the materials are permanently installed or repair costs due to faulty workmanship.