What is the primary purpose of a floater policy?

A floater policy is designed specifically to provide coverage for movable or transportable property that is not fixed in one location. This type of insurance is particularly useful for items like jewelry, artwork, or equipment that a person might transport from one place to another or that may be at risk when away from a primary location.

The key characteristic of a floater policy is its flexibility; it covers items whether they are in transit, stored offsite, or at various locations, ensuring that individuals or businesses are protected from loss or damage. This is an important aspect of managing risk for valuable or essential items that are not confined to a single location.

In contrast, the other options reflect different insurance needs. Covering fixed property refers to standard property insurance meant for buildings and similar structures, increasing overall asset value is more related to investments rather than insurance, and providing liability coverage pertains to protecting against claims for damage or injury caused to others, which is a different insurance focus entirely.