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Which statement BEST describes the coverage scope of a Personal Articles Floater (PAF) or the HO 04 61 Scheduled Personal Property endorsement compared with the unscheduled personal property coverage under a homeowners Coverage C?
APAF covers fewer perils than Coverage C but applies on a worldwide territory basis with no sublimits
BPAF covers only items inside the residence premises, excludes theft, and is settled at actual cash value
CPAF and Coverage C share identical scope; the PAF simply raises the per-category internal limits
PAF provides open-perils coverage and a worldwide territory, typically with no deductible
Why this is the answer
Personal Articles Floater (monoline) and the HO 04 61 Scheduled Personal Property endorsement provide open-perils coverage on a per-item scheduled basis, with worldwide territory and typically no deductible; only fine arts are settled at an agreed value, while other classes pay the least of actual cash value, repair cost, replacement cost or the scheduled amount. This is materially broader than unscheduled Coverage C, which writes contents on named perils (or limited open-perils on HO-5), is subject to category sublimits (e.g., jewelry theft sublimit), and applies the policy deductible (ISO HO 04 61).
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