Property & Casualty Insurance Exam (National Portion)Casualty InsuranceEasy
A homeowner's dog, known for its friendly demeanor, unexpectedly bites a guest who was petting it. The guest suffers a minor injury requiring stitches. Under the homeowner's personal liability coverage, how would this claim typically be handled?
- AThe claim would only be covered if the homeowner had purchased a specific 'animal liability' endorsement.
- BThe policy would cover the medical expenses and potential legal defense costs for the homeowner.
- CThe homeowner would be personally responsible for all costs, as animal bites are excluded from standard policies.
- DThe claim would be denied because the dog was not previously known to be aggressive.
Show answer & explanationAnswer & explanation
Correct answer: B. The policy would cover the medical expenses and potential legal defense costs for the homeowner.
Standard homeowner's policies include personal liability coverage that extends to bodily injury and property damage caused by the insured or their household members, including pets, unless specifically excluded.
Why the other options are wrong
- A. While specific animal liability endorsements exist, standard homeowner's liability often covers animal bites unless a specific exclusion applies.
- C. Animal bites are generally covered under the personal liability section of a homeowner's policy, unless a specific exclusion is present for that breed or animal.
- D. Previous aggression is not always a prerequisite for liability coverage to apply to animal bites.
Personal Liability Coverage
Part of a homeowner's insurance policy that protects the insured from claims arising from bodily injury or property damage to others for which they are legally responsible.
- Covers bodily injury and property damage to third parties.
- Includes legal defense costs.
- Applies to incidents occurring on or off the insured's property.
- Often covers actions of household members and pets.
Memory trick: Homeowners' safety net catches canine calamities.