Which of the following best describes a personal effects floater (PEF)?

A personal effects floater (PEF) is a type of insurance that specifically provides comprehensive coverage for personal belongings while they are being transported or while traveling. This policy is particularly valuable for individuals who are often away from home, as it protects items like clothing, jewelry, and electronics against risks such as theft, damage, and loss during trips.

The term "floater" indicates that the coverage is not limited to a specific location but rather follows the insured's personal items wherever they may go. This feature makes the PEF highly beneficial for travelers, as most homeowners or renters insurance policies may not offer adequate coverage outside of the insured premises.

In contrast, other options describe characteristics that do not accurately reflect the nature of a PEF. For example, coverage on a limited basis does not align with the comprehensive nature of a PEF, and suggesting it is designed for commercial properties misses the personal aspect of the policy. The absence of liability coverage is also a mischaracterization. While a PEF focuses on personal effects, it does not inherently lack liability coverage altogether, as liability can be included under different circumstances or in conjunction with other policies.