Rhode Island Insurance Adjuster Exam

Are inherent vice, wear and tear, and deterioration covered under a Personal Effects Floater?

1. Included

2. Partially covered

3. Excluded

4. Coverage varies by provider

The correct answer is: Excluded

The correct answer illustrates that inherent vice, wear and tear, and deterioration are excluded under a Personal Effects Floater. This type of insurance specifically covers personal possessions against certain types of loss or damage, typically due to unforeseen events such as theft, fire, or vandalism. However, inherent vice refers to the natural characteristics of an item that can cause it to deteriorate over time, which means these qualities are not insurable risks. Wear and tear is a normal decline in condition due to age and regular use, and deterioration encompasses the process of falling apart. These factors are considered part of the routine lifecycle of items and are not attributable to external, accidental causes. Therefore, insurance policies generally do not cover damage or loss resulting from these pre-existing conditions, reinforcing the overall understanding that coverage is intended for unexpected incidents, not the predictable decline of items.