What is the purpose of a personal property floater (PPF)?

A personal property floater (PPF) is designed to provide coverage for personal belongings on an open perils basis, which means that it protects against risks unless specifically excluded in the policy. This is particularly beneficial for individuals with valuable items that may not be adequately covered under standard homeowners or renters insurance policies. The PPF allows for broader coverage of personal property regardless of where it is located, whether at home, away from home, or even while traveling.

In contrast, the other options do not accurately describe the purpose of a PPF. Coverage for property in a specific location implies a more restrictive approach, such as a homeowners policy, which may not extend beyond the address listed. Limiting coverage based on specific items typically pertains to scheduled personal property insurance, which identifies valuable items for guaranteed coverage but does not reflect the general principle of a floater policy. Lastly, insuring commercial assets does not align with the definition of a personal property floater, as it pertains to personal rather than business coverage.