Rhode Island Insurance Adjuster Exam

What is covered under a personal articles floater?

1. Inherent vice

2. Natural deterioration

3. Breakage

4. Wear and tear

The correct answer is: Breakage

A personal articles floater is designed to provide broader coverage for specific types of personal property, such as jewelry, art, collectibles, and other valuable items. This type of insurance policy typically offers coverage against various risks that standard homeowners or renters policies might not fully protect against. The coverage for breakage is indeed included under a personal articles floater. This means that if an insured item is accidentally damaged or broken, the policy would provide compensation for repair or replacement, depending on the terms. This is crucial for items like fine china or glass sculptures, which might be more susceptible to accidental damage. In contrast, inherent vice, natural deterioration, and wear and tear are generally considered exclusions in most insurance policies, including personal articles floaters. Inherent vice refers to a characteristic of certain materials that causes them to deteriorate over time or under certain conditions. Natural deterioration is the gradual decline in condition due to age or use, while wear and tear specifically relates to damage that comes from normal everyday activities. These types of damage are typically not covered because they result from the item's intrinsic qualities or regular usage, rather than a covered peril.