South Carolina Personal Lines Practice Exam

What additional coverage does a HO policy typically provide apart from property coverages?

1. Legal costs for litigation

2. Medical payments to others

3. Home warranty coverage

4. Income replacement coverage

The correct answer is: Medical payments to others

A Homeowners (HO) policy typically includes coverage for medical payments to others, which is a key feature designed to provide financial assistance in case someone is injured on your property, regardless of fault. This coverage generally applies to medical expenses incurred by guests or visitors who are hurt while on your premises, up to a specified limit. This aspect of homeowners insurance helps to cover immediate medical treatment costs and can prevent the injured party from pursuing legal action for damages, thereby protecting the policyholder from potential lawsuits related to the injury. While legal costs for litigation can be a component in some insurance products, it is not a standard feature of homeowners insurance. Home warranty coverage is separate and pertains to repairs and replacements of home systems and appliances and does not fall under typical HO policy provisions. Income replacement coverage is more relevant to disability or business insurance rather than homeowners insurance. Thus, the inclusion of medical payments to others is what sets it apart and underlines its importance in providing a wider safety net for homeowners.