Which of the following best describes the personal articles floater?

A) an endorsement providing coverage for items of expensive personal property not adequately covered under the standard homeowner's policy. B) an addition to the automobile policy intended to cover items of personal property that are often in or upon a covered automobile. C) a specialized inland marine policy covering boats and trailers used with boats. D) a liability policy that covers against liability caused by ownership or use of items of personal property. E) none of these.

Jamil and Vicky purchased a $200,000 homeowner's policy for their house in 1988. They have renewed the policy each year since and have replacement coverage. This policy has a $1,000 deductible. Their home now has a replacement value of $275,000. Last week they came home to find a small fire which caused the following damages:

Home$50,000Personal property$20,000Landscaping$ 7,000

Assume Jamil and Vicky have a standard HO-3 policy with personal property covered at 50% and landscaping covered for 10%. How much will the insurance pay for the losses of their personal property and landscaping?

Question 22 options:

A) $15,000 B) $ 9,700 C) $24,545 D) $27,000 E) $30,000