That portion of the balance of a bank account which the bank still shows as being in that account even though a cheque or other instrument payable from that account, has been negotiated. Float occurs during the interval of time between the negotiations of the instrument and its clearance and debiting against the account.
Insurance Encyclopedia
Floater
An inland marine form covering movable property wherever located within territorial limits.
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UK: An item on moveable property with a sum insured that moves with the goods to wherever the property is located within a range of locations. The item ‘tops up’ sums insured designated to specific locations when those sums insured become temporarily inadequate. The floater is subject to the two conditions of average and assists an insured whose distribution of goods across premises varies over time. See FLOATING POLICY.
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Property Insurance on moveable property, whatever its location within the territorial limits of the Policy. The coverage “floats” with the property. Generally there is a territorial limit and coverage is provided at any location within that territory.
Floater (Property Insurance)
Insurance on a movable piece of property, for example, a boat. The insurance is valid regardless of where the property moves, as long as it is within an area established in the contract.
Floater Clause under Standard Fire and Special Perils Policy
In consideration of floater extra charged over and above the policy rate the sum insured in aggregate under the policy is available for any one, more, or all locations as specified in respect of movable property.
Floater Declaration Policy for Fire Insurance
Can be issued subject to a minimum sum insured of Rs. 2 crores and compliance with rules for Fire Insurance, Floater policy and Declaration policies. Minimum retention however be 80% of the annual premium.
Floater policy
Insurance policy for movable property that covers it wherever loss may occur (e.g., tourist’s baggage).
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A Policy under the terms of which protection follows movable property covering it wherever it may be, e.g., a Policy on tourist’s baggage.
Floater Policy for Fire Insurance
To cover stocks lying in various godowns in the same city or village or in different towns, villages/cities and for which the insured in not able to declare the exact value at each place separately but is sure of the total value in all the godowns. Floating policies are issued with a single sum insured covering goods at more than one locations. Only on stock in trade subject to location of each godown to be declared. The rate shall be the highest rate applicable to insured’s stock at any location with a floater extra loading of 10%. In case stocks in a process block are covered and the rate for the process block is higher than the storage rate, the process rate plus 10% loading shall apply. Kutcha construction to be ignored.
Floaters
Insurance policies that cover property that can be moved from one location to another for both transportation perils and perils affecting property at a fixed location.
Floating policy
1. Marine. A cargo policy covering individual shipments each of which is declared and eventually exhausts the sum insured. The arrangement has largely given way to open covers. 2. Floating insurance for building contractors. Annual policy insures buildings of normal construction in course of erection and completion (including outbuildings, walls, etc.) up to a specific sum on the site of any of the insured’s contracts.
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(i) When there are a series of export or import transactions, it is used for a single global sum insured, as shipments are made a declaration of their value must be made to the Insurers, the balance of the sum insured applicable to future transactions being thus automatically reduced. (ii) Policies where the sum insured covers a sequence of events, being reduced as each event occurs.
Flood
As defined in the National Flood Insurance Program Dwelling Form, a general and temporary condition of partial or complete inundation of two or more acres of normally dry land or two or more properties (one of which is the insured’s) caused by the overflow of the natural boundaries of a body of water or the unusual and rapid accumulation of surface water runoff, or mudflow. Some insurance policies that include flood as a covered peril only insure against damage caused by overflow of the natural boundaries of a body of water, but other policies also may insure against surface water losses.
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(01) Flood is usually defined as “escape” from its normal confine of a body of water, due to a rise in its level, or to the breakdown of the barriers retaining it. The essential ingredients of flood is the rise of water to an abnormal level. (02) Overflow of water from its natural boundaries. More specifically defined as “a general and temporary condition of partial or complete inundation of normally dry land areas from (a) the overflow of inland or tidal waters, or (b) the unusual and rapid accumulation or runoff of surface waters from any source. (03) abnormal, flood related erosion and undermining of shorelines. Flood also means inundation from mud flows caused by accumulations of water on or under the ground as long as the mud flow and not a landslide is the proximate cause of the loss. (04) A flood is an overflow of an expanse of water that submerges land and the property. Flood may be a result of too much rain, excessive melting of snow, breach of canals and ponds etc.