Endorsements & Optional CoveragesQuestion 94 of 474
Coverage E personal liability on a homeowners policy responds to which of the following?
a.Only liability arising out of the insured's business or employment activities, with the insurer's defense costs counted inside the policy limit rather than in addition to it
b.Bodily injury or property damage for which the insured is legally liable, on or off the premises, including suit defense in addition to limits
c.Only bodily injury occurring on the residence premises, because Coverage E stops at the property line and away-from-home incidents are left to the insured personally
d.Only property damage that the insured causes intentionally, because Coverage E was written to respond to deliberate acts rather than to accidental occurrences
Explanation
Coverage E pays sums the insured is legally obligated to pay because of bodily injury or property damage caused by an occurrence. It applies on or off the residence premises (with some exclusions) and provides defense costs in ADDITION to the policy limit. Intentional acts are excluded, and business or auto liability is excluded (covered elsewhere).
Law Reference: ISO HO Coverage E personal liabilityThis topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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