Texas All Lines Adjuster Practice Test

What does a Personal Property Floater do?

1. Insures commercial property

2. Protects property during transport

3. Covers legal expenses from lawsuits

4. Provides health insurance coverage

The correct answer is: Protects property during transport

A Personal Property Floater is specifically designed to protect personal belongings during their transport or while they are in a location outside of the insured premise. This type of coverage is particularly valuable for individuals who frequently move their possessions, whether for travel, relocation, or temporary storage. The floater offers broader protection than typical homeowners or renters insurance, as it usually covers a wider range of risks associated with the loss or damage of personal items while they are away from the insured home or location. The other options focus on different aspects of insurance that do not align with the specific function of a Personal Property Floater. For example, insuring commercial property pertains to business possessions, covering legal expenses from lawsuits relates to liability insurance, and providing health insurance coverage addresses medical expenses. Each of these options serves a distinct purpose in the spectrum of insurance, showcasing the specialization in coverage types and emphasizing the role of the Personal Property Floater in safeguarding personal items during transit.