South Carolina Personal Lines Practice Exam

What are the liability coverages included in Homeowners (HO) policy forms?

1. Coverage E - Personal Liability

2. Coverage F - Medical Payments to Others

3. Coverage G - Property Damage

4. Coverage H - Business Liability

The correct answer is: Coverage E - Personal Liability

Homeowners (HO) policy forms include specific liability coverages designed to protect the insured against claims for bodily injury or property damage that they may become legally obligated to pay due to their personal activities or the activities of their family members and pets. Coverage E, known as Personal Liability, is a critical component of homeowners insurance. It provides financial protection in the event that the insured is found legally liable for causing bodily injury or property damage to others. For example, if a guest is injured in the insured's home and files a lawsuit for medical bills or lost wages, Coverage E would help cover these costs, ensuring the insured does not face out-of-pocket expenses for claims related to accidents occurring on their property or as a result of their actions. Coverage F, while also a vital part of a homeowners policy, is specifically focused on Medical Payments to Others, which covers medical expenses for injuries sustained by guests on the insured's property, regardless of liability. This does not constitute primary "liability" coverage in the same sense as Coverage E. Coverage G and Coverage H do not apply to standard homeowners policies. Coverage G is typically related to specific liability policies, such as commercial liability, while Coverage H does not correspond to standard liability coverage within homeowners forms. Therefore,