Homeowners Policy (HO)Question 358 of 474
The insured's 9-year-old son breaks a neighbor's $1,400 laptop while playing, and nobody claims the boy was negligent. The homeowners policy pays:
a.$500, a goodwill sublimit
b.$1,000, regardless of fault
c.nothing, as fault is absent
d.$1,400, the full loss shown
Explanation
Damage to property of others is a Section II additional coverage that pays up to $1,000 per occurrence for property damage caused by an insured, at replacement cost and whether or not the insured is legally liable, so $1,000 of the $1,400 is paid. The answer paying nothing applies a liability test this additional coverage deliberately leaves out.
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