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

A personal effects floater (PEF) is designed to provide comprehensive coverage for personal possessions while they are being transported or temporarily housed away from home. This type of insurance is particularly valuable for individuals who travel frequently, as it protects items such as clothing, electronics, and other valuables against risks such as theft, loss, or damage. The comprehensive nature of the coverage means that it typically includes a wide range of perils, ensuring broader protection compared to standard homeowners or renters insurance which may have limitations or exclusions for off-premises coverage.

While the other options touch on aspects related to insurance, they do not accurately capture the essence of what a personal effects floater provides. For instance, coverage on a limited basis does not reflect the PEF's broad protection; hence it falls short in understanding the policy's intent. Similarly, the PEF is specifically tailored to individuals rather than commercial properties, which is the focus of other types of floaters. Lastly, while liability coverage is indeed absent in a personal effects floater, that characteristic does not define what a PEF fundamentally offers, which is comprehensive protection for personal items during travel.