Conditional Sales Floater

A conditional sales floater, what is it good for?

Well, if you happened to sell a house to someone, and then you allowed them to move in and make installment payments, and then the place burned down...your buyer might decide he no longer needs to make any payments. So a conditional sales floater on an insurance policy could come in very handy.

It protects a seller if any type of property is damaged before it's paid off by reimbursing her for the remaining value. It can protect practically anything...electronics, houses, boats, other expensive equipment, etc.

Carrie sells Greg her boat for $5,000 and Greg agrees to pay her $200 a month until it's paid off. She also lets him use the boat in the meantime. Greg pays Carrie $1,000 before he crashes into a pier and wrecks the boat. Obviously, he doesn't want to continue making the payments. Fortunately, Carrie had a conditional sales floater on her insurance policy, so she'll be reimbursed $4,000...the amount Greg still owed.