What is the deductible for a Personal Articles Floater (PAF)?

• A. $250
• B. $100
• C. $500
• D. $0

Answer: (D)

Deductibles are the amount you pay out of pocket before the insurance coverage kicks in. For a Personal Articles Floater, coverage is written on a schedule with separate limits for each item, and most policies waive the deductible, meaning the insurer pays up to the listed limits without subtracting a fixed amount. This setup makes it practical to insure valuable items like jewelry or cameras, since the goal is to reimburse you up to the item’s limit without a mandatory out-of-pocket deductible. Therefore, the deductible for a Personal Articles Floater is $0. The other deductible figures would impose a fixed out-of-pocket cost before any payment, which isn’t how a typical PAF operates.