Question

question 1 10 pts a person buys a flat screen, plasma, theater - like television. the person has homeowners insurance. why would it be appropriate to add a personal property floater to that insurance?

• to reduce the premium on the homeowners insurance.
• to show the insurance company a good faith investment has been made.
• to protect the person who owns the television from liability for damages.
• to cover the cost of replacement should the television get damaged or stolen.

Explanation:

A personal property floater is an insurance add - on for valuable personal items. Homeowner's insurance may have limits on coverage for such items. The TV is a valuable personal property. Option 1: A floater doesn't reduce the homeowner's premium. Option 2: It's not about showing good faith investment. Option 3: Liability coverage is different from property coverage. Option 4: A floater covers the cost of replacing the TV if it's damaged or stolen, which matches its purpose.

Answer:

D. To cover the cost of replacement should the television get damaged or stolen.