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.
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.