What type of coverage does Coverage E provide in homeowners policies?

What type of coverage does Coverage E provide in homeowners policies?

• A. Property damage
• B. Personal liability
• C. Loss of use
• D. Dwelling coverage

Answer: (B)

Coverage E in homeowners policies specifically provides personal liability coverage. This type of coverage is designed to protect homeowners from financial loss in the event that they are found legally responsible for causing injury to another person or damage to someone else's property. For instance, if a visitor is injured on the homeowner's property due to negligence, or if the homeowner accidentally damages a neighbor's fence, Coverage E would help cover legal expenses, medical bills, and any settlements or judgments awarded. This personal liability coverage is essential for homeowners as it helps safeguard their financial assets and provides peace of mind, knowing they have protection against claims that may arise from everyday activities. It is distinct from other types of coverage found in homeowners policies, such as property damage or dwelling coverage, which address different risks associated with property loss or damage.

Coverage E in homeowners policies specifically provides personal liability coverage. This type of coverage is designed to protect homeowners from financial loss in the event that they are found legally responsible for causing injury to another person or damage to someone else's property. For instance, if a visitor is injured on the homeowner's property due to negligence, or if the homeowner accidentally damages a neighbor's fence, Coverage E would help cover legal expenses, medical bills, and any settlements or judgments awarded.

This personal liability coverage is essential for homeowners as it helps safeguard their financial assets and provides peace of mind, knowing they have protection against claims that may arise from everyday activities. It is distinct from other types of coverage found in homeowners policies, such as property damage or dwelling coverage, which address different risks associated with property loss or damage.