State Farm Insurance License Practice Exam

Which type of coverage includes the insured's personal property in the form of jewelry, furs, and fine arts?

1. Homeowner's Coverage

2. Commercial Property Coverage

3. Personal Articles Form

4. Add-On Coverage

The correct answer is: Personal Articles Form

The type of coverage that encompasses the insured's personal property such as jewelry, furs, and fine arts is referred to as the Personal Articles Form. This specific form provides a way to insure high-value items individually, ensuring that they are covered for their full value, often against a wider range of risks than a standard homeowners policy would typically offer. A Homeowner's Coverage generally covers personal belongings, but it may have limitations or sub-limits for high-value items like jewelry or fine art. This means that while it offers some level of protection, it may not be sufficient for those with expensive possessions. Commercial Property Coverage is focused on business-related items and does not address personal property owned by individuals, making it irrelevant in this context. Add-On Coverage typically refers to endorsements that can be added to an existing policy for additional protection, but it might not specifically target high-value personal items as the Personal Articles Form does. Thus, the Personal Articles Form is designed specifically to address the insurance needs of valuable personal property like jewelry, furs, and fine arts, ensuring they are properly protected.