Homeowners Insurance Policysection H (liability Coverage)

Definition of "Homeowners insurance policysection h (liability coverage)"

Section providing protection under three coverages:

  1. Coverage E (Personal Liability} coverage in the event a suit is brought against the insured because of bodily injury and/or property damage resulting from the acts or non-acts of the insured. Also covers the insured's spouse, relatives of either, and others under age 21 under the insured's care. Just about any personal act is insured. For example, if the insured lives in Shreveport, Louisiana, and hits someone with a tennis ball in a game in Hong Kong, the insured is covered against a possible lawsuit. The insurance company must also pay for the costs of defending the insured, even if a suit has no reasonable basis. Defense costs are separate and in addition to the limits of liability in the policy. For example, if the limits of the policy are $100,000 and the defense costs are $200,000, the insurance company could have to pay a total of $300,000 on behalf of the insured. Once the insurance company pays the $100,000 limit in the policy, the insurance company's obligation to defend the insured any further ends. The basic liability limits are $100,000 the minimum amount stipulated in the policy. (For a relatively few dollars these limits can be increased substantially.)
  2. Coverage F (Medical Payments to Others) coverage for reimbursement of reasonable medical expenses incurred (a) by the insured (and individuals as defined in Coverage E, above); and (b) for injuries sustained by a third party either on or off of the insured's premises as a result of the activities of the insured and others covered. This is called "Good Samaritan Coverage" because by providing emergency medical expenses of an injured third party, the insured does not admit liability, nor does the injured third party relinquish his or her right to bring suit against the insured by accepting the medical aid.
  3. Coverage G (Damage to Property of Others) as with Coverage F, the insured is reimbursed for expenses incurred up to $250 regardless of legal liability for damage to the property of a third party. The insured and covered residents of the household make payment out of a feeling of moral responsibility for the damage to the property, which may have the result of a liability suit not being brought.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Transaction in which the ceding company pays a premium and is guaranteed certain future payments to fund future losses. If losses are less than was expected, the ceding company receives a ...

Addition to reflect exposures with a greater probability of loss than standard exposures. For example, insuring a munitions factory obviously requires a premium greater than that required ...

Method of selling insurance directly to insureds through a company's own employees, through the mail, or at airport booths. The company uses this method of distribution rather than ...

Associated insurers that are under common stock ownership or interlocking directorates. Such an arrangement makes it easier to exchange insurance products for sale to the consumer, reduces ...

Payment for coverage that remains throughout the same premium-paying period. ...

Deductible that applies for the year. For example, a business pays for the first $40,000 of losses incurred during the year and the insurance company pays for all losses above that amount ...

State law that stipulates that the worth of separate accounts must be valued at current market with the exception of those separate accounts established and maintained for guaranteed ...

Monetary sum paid to an intermediary who acts as the contact between the lender (an insurance company) and the borrower. ...

Government reinsurance program that provided coverage for U.S. properties during World War II. Private insurers shared the first layer of coverage, with the government providing ...

Popular Insurance Questions