Conditional Sales Floater

A conditional sales floater is a type of insurance that protects a seller of property that is purchased in installments or on a conditional basis. If the property is damaged prior to being fully paid off, the seller is reimbursed. 

A conditional sales floater is also known as an "installment sales floater." Conditional sales policies can be used to protect everything from TVs to cars, boats and homes. The policy will generally only indemnify the seller for the portion of the property that has yet to be paid off, or the original sales price minus the aggregate payments made by the purchaser.

As an example of conditional sales floater, consider someone who sold their car, boat or home to someone who’s making monthly payments to you, then wrecks the property and announces the deal’s off. This conditional sales floater will reimburse the seller for what they're still owed.

In general insurance terms, a floater is an insurance policy that provides additional coverage for items that are easily movable or recently sold.

Often homeowners and business insurance policies will only cover property at a specific location. Sometimes they won’t repay an item’s full value. Others won’t cover your belongings if you lose them yourself. And most policies don’t cover property after you sell it. Floaters fill these gaps. Other types of floater insurance policies include:

• Fur Floater, Jewelry Floater and other Personal Articles Floaters: These policies add add insurance coverage for expensive personal items. They can cover an item while it’s away from your home or business. They ensure an item’s full value will be replaced, including the full value of a pair of earrings if you only lose one. They can add coverage for mysterious disappearances.
  
• Commercial Property Floater: This floater is pretty much the same as a personal articles floater, but for business property, important for any company that regularly moves around expensive equipment.
  
• Wedding Presents Floater: This floater is a short-term policy that covers your precious gifts until you get them home. Some items like vehicles and cash may not be covered.
  
• Unscheduled Property Floater: "Unscheduled property" refers to items covered in your main insurance that don’t need to be individually listed (often furniture, clothes, equipment, etc.). A floater can be purchased to cover items in situations where they wouldn’t normally be covered, such as rentals and certain types of damage.