This paper addresses the problem of fault detection for linear parameter-varying systems in the presence of measurement noise and exogenous disturbances using Set-Valued Observers (SVOs). The applicability of current methods is limited in the sense that, to increase accuracy, the detection requires a large number of past measurements and the boundedness of the set-valued estimates is only guaranteed for stable systems. In order to widen the class of systems to be modeled and also to reduce the associated computational cost, the aforementioned issues must be addressed. A solution involving left-coprime factorization and deadbeat observers is proposed that reduces the required number of past measurements without compromising accuracy and allowing the design of SVOs for fault detection of unstable systems by using the resulting coprime factorization stable subsystems. The algorithm is shown to produce bounded set-valued estimates and an example is provided. Performance is assessed through simulations, illustrating, in particular that small-magnitude faults (compared to exogenous disturbances) can be detected under mild assumptions.