Property & Casualty Insurance Exam (National Portion)Casualty InsuranceEasy
A client has a homeowner's policy with a personal liability limit of $300,000. The client's child accidentally breaks a neighbor's antique vase valued at $10,000. Additionally, the client is sued for $50,000 for libel due to a social media post. How much will the homeowner's policy pay for the broken vase?
- A$0
- B$10,000
- C$50,000
- D$1,000
Show answer & explanationAnswer & explanation
Correct answer: B. $10,000
Homeowner's policies typically include coverage for property damage that the insured or their family members are legally liable for. The $10,000 damage to the vase falls under this coverage, well within the personal liability limit.
Why the other options are wrong
- A. Incorrect; property damage caused by the insured is typically covered.
- C. Incorrect; this relates to the libel claim, not the vase.
- D. This might be a special limit for certain types of property damage, but a standard vase would be covered up to its value within the general liability limits.
Homeowner's Personal Liability - Property Damage
Coverage within a homeowner's policy that protects the insured against claims for property damage accidentally caused to others by the insured or resident family members.
- Covers legal liability for property damage.
- Applies to incidents occurring on or off the insured's premises.
- Subject to the policy's overall personal liability limit.
Memory trick: Your home policy's liability is a 'blanket' for your family's oopsies, both personal and property.