Homeowners Insurance Policysection H (liability Coverage)
Section providing protection under three coverages:
- 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.)
- 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.
- 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.
Popular Insurance Terms
Means of projecting the costs of pension plans on a level basis over a specified future period of time. The actuarial value of each employee's future benefits to be paid at retirement is ...
Provision in ocean marine cargo policies to limit an insurance company's liability for partial losses; the company has liability only for losses that exceed a stipulated percentage of the ...
Coverage for furs owned by a furrier, or a customer's furs in the care, custody, and control of the furrier. Coverage is on an all risks basis except those specifically excluded: wear and ...
Actual morbidity experience of an insured group as compared to the expected morbidity for that group. ...
Charitable planning strategy in which a donor sells an asset to the charity for an amount less than its fair market value. Internal Revenue Service regulations require that the tax basis ...
Arrangement under which employees may choose their own employee benefit structure. For example, one employee may wish to emphasize health care and thus would select a more comprehensive ...
Insurance that covers an indirect loss stemming from a direct loss by a covered peril to income-producing property. A building destroyed by fire represents a direct loss. Lost income ...
Health plan that pays a flat fee for each patient it covers. ...
Process of distributing the costs associated with losses and risks over a number of insureds. ...
Have a question or comment?
We're here to help.