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

Individual who represents a ceding insurance company in placing its business with a re insurer. ...

Factors on the application that must be evaluated in order to complete the underwriting process: age; sex; physical condition; personal health history; family health history; financial ...

Approach to derive trend lines that can be applied to rating insured losses. Other methods require substantial preliminary operations to solve systems of equations of several unknowns. The ...

Insurance purchased from an insurance company that has been licensed in the state in which the policy is purchased. This insurance is purchased through an agent or broker who are licensed ...

Policy provision that provides coverage for continuing payroll expense of all employees of an insured business (except for officers and executives) for the first specified number of days of ...

Ruling that is the most significant source for the valuation of closely held corporation capital stock critical to the close corporation plan. This ruling defines the fair market value as ...

Type of mortality table that is based on combined statistics from both the ultimate mortality table and the aggregate mortality table. It shows total statistics for the probability of ...

Circumstance under which there is a significant deviation of the actual aggregate losses from the expected aggregate losses. For example, a hurricane is a hazard that is catastrophic in ...

Standards used to determine claims payments in cases of overlapping property/liability insurance coverage. At one time, each type of insurance had its own rules to govern claims where more ...

Popular Insurance Questions