Introduction

All homeowners forms contain a separate section on personal liability insurance. This section, which is built into every homeowners policy, is designed to protect the insured household against its liability arising out of personal (non-business) activities. The coverage does not extend to automobile liability.

The liability section consists of two parts—the first (Coverage E) provides liability insurance; the second (Coverage F) provides coverage for certain medical expenses incurred by persons who come on the insured location or are injured by an activity of the insured. Each of these coverages is discussed separately.

Coverage E–Personal Liability

WHAT IS COVERED

Bodily Injury and Property Damage

The policy will pay, up to its limit, damages for which the insured is liable, arising out of bodily injury or property damage due to an occurrence (covered incident).

Bodily injury is defined as bodily harm, sickness or disease, including required care, loss of services, and resulting death.

Property damage means physical injury to, destruction of, or loss of use of tangible property.

Occurrence means an accident that includes continuous or repeated exposure to substantially the same general harmful conditions, which results during the policy period in bodily injury or property damage.

The policy will pay for such claims arising out of the insured premises, and also for occurrences that give rise to claims, as defined, from personal acts of any insured away from the premises, e.g., on a golf course. It also extends to injuries caused by a residence employee of the insured or an animal owned by the insured.

INSURED LOCATION

The policy covers claims arising out of any of the following:

• The premises shown in the declarations
• Any premises acquired during the policy period by the insured for use as a residence
• Any premises not owned by the insured where he or she is residing temporarily
• Vacant land (other than farmland) owned by or rented to the insured
• Land owned by or rented to an insured on which a one- or two-family dwelling is being built for the insured as a residence
• Any part of the premises rented occasionally to an insured for non-business use
• Individual or family cemetery plots or burial vaults of an insured

DEFENSE

The policy will pay for the cost of providing a legal defense. These expenses will be paid by the company, even if the suit against the insured is groundless, false, or fraudulent. This expense is payable in addition to claims the company may pay. The company retains the right to settle any claim or suit it decides is appropriate.

FIRST-AID EXPENSE

The policy will pay for first-aid expenses incurred by others (but not any insured under the policy) for bodily injury covered under the policy.

CLAIM EXPENSES

The policy will pay the expenses incurred in the defense of any suit under the policy and any costs taxed against an insured. Payment is also available for the:

• Premiums on any bonds required in a suit defended by the company, subject to the limit of liability under the policy
• Reasonable expenses incurred by an insured at the company’s request, including actual loss of earnings up to $250 per day incurred in assisting in an investigation, defense, or suit
• Interest on the entire judgment that accrues after the judgment is entered and before the company has paid the part of the judgment for which the policy is liableAny premises not owned by the insured where he or she is residing temporarily
• Prejudgment interest awarded against the insuredVacant land (other than farmland) owned by or rented to the insured

DAMAGE TO THE PROPERTY OF OTHERS

The policy will pay up to $1,000 per occurrence for damage to the property of others caused by an insured. This section does not apply to any amount recoverable for property damage under Section I of the policy (discussed above).