Dwelling Forms
Coverage E - Personal Liability
All forms of these policies include a separate section on personal liability
insurance. The liability section, which is inserted into every
homeowners policy, is designed to protect the insured and his family
members against almost all liability arising out of his personal
(non-business) activities, except for automobile liability.
The liability section is comprised of two parts - the first part, coverage E,
provides liability insurance. The second part, coverage F, provides
coverage for certain medical expenses incurred by persons who come
on the insured location or are injured by an activity of the insured. Each
of these coverages is discussed separately.
WHAT IS COVERED
Bodily Injury and Property Damage - The policy will pay, up to its limit,
damages for which the insured is liable, arising out of bodily injury or
property damage due to an occurrence.
Bodily injury - is defined as bodily harm, shock, fright, mental anguish,
sickness or disease, including required care, loss of use and resulting
death.
Property damage - physical injury to, destruction of, or loss of use of
tangible property.
Occurrence - an accident, including continuous or repeated exposure to
substantially the same general harmful conditions, which results during
the policy period in bodily injury and/or property damage.
NOTE: The policy will pay for such claims arising out of the insured
premises, and also for occurrences which give rise to claims from personal
acts of the insured away from the premises, e.g., in a shopping mall. It
also extends to injuries caused by a residence employee of the insured or
an animal owned by the insured.
Insured Location - The policy covers claims arising out of the insured
premises indicated on the policy Declarations and any other premises
acquired by the insured during the policy period for use as a residence,
any premises where the insured is temporarily residing and not owned,
vacant land (but not farm land) owned by or rented to the insured, land
owned by or rented to an insured on which a single family or two family
home is being built for the insured as a residence, premises rented
occasionally to an insured for non-business use and individual or family
cemetery plots or burial vaults of an insured.
Defense - In addition, the policy will pay for the cost of the defense.
These expenses will be paid by the insurer, even if the lawsuit brought
against the insured is groundless, false or fraudulent. This expense is
payable in addition to the claim which the company will pay. The insurer
retains the right to settle any claim or lawsuit it deems appropriate.
There are situations in which no insurance is provided, and they will be
discussed in the section on Medical Payments.
First Aid Expense - The policy will pay for first aid expenses incurred by
others (but not any insured under the policy) for bodily injury covered
under the policy.
Defense Expenses - The policy will pay the expenses arisen in the
defense of any lawsuit under the policy and any costs levied against the
insured.
Also, the company will pay for the premiums on any bonds required in a
lawsuit defended by the insurer up to the amount of the premium for the
bond amount require.
Also, the company will reimburse the insured for the reasonable
expenses incurred by an insured at the insurer's request, including
actual loss of earnings up to $250 per day incurred in assisting in an
investigation or defense of the lawsuit.
The company will also pay for the interest on the entire judgment which
accrues after the judgment is rendered and before the insurer pays the
part of the judgment for which the policy is liable.
Also, the company pays any pre-judgment interest awarded against the
insured.
NOTE: While this expense is covered under the policy, it is payable as a
part of the policy limits and not as additional coverage over and above
those limits.
Damage to the Property of Others - The insurer will pay up to $1,000 per
occurrence for damages to the properties of others caused by the
insured.
This section does not apply to any amount recoverable for property
damage under Section I (section covering the home) of the policy.
Loss Assessment - The policy will pay up to $1,000 towards an
assessment charged to the insured by an association of property
owners where the assessment is made as a result of a loss to which
the liability section of the policy applies.
CAUSES OF LOSS NOT COVERED
Intentional Acts - There is no coverage for bodily injury or property
damage which is a result expected or intended by an insured, except
when such insured is below the age of 13, in which case, the policy
would provide coverage.
Motor Vehicle Liability - The policy does not provide coverage for liability
arising out of the ownership, use, loading or unloading of motor vehicles,
including trailers owned by or operated by or rented or loaned to an
insured nor the entrustment by the insured of a motor vehicle or
motorized land conveyance to any person. Also not covered is the
vicarious parental liability for the actions of a child or minor in a
conveyance excluded above.
An exception is made for a trailer not towed by or carried on a motorized
land conveyance or a motorized land conveyance designed for
recreational use off public roads, not subject to state motor vehicle
registration which is not owned by an insured or owned by an insured
and on an insured location. An exception is also made for a motorized
golf cart or a vehicle not subject to state motor vehicle registration used
to service an insured's residence, or one designed for assisting the
handicapped.
Watercraft - The policy does not provide coverage for liability arising out
of the ownership, use, maintenance, loading or unloading of watercraft
with inboard or inboard-outdrive motor power owned by an insured; or
with inboard or inboard-outdrive motor power of more than 50 hp rented
by an insured; or a sailing vessel, with or without auxiliary power, 26
feet or higher in length owned or rented by an insured; or powered by
one or more outboard motors with more than 25 total hp if the outboard
motor is owned by an insured.
An exception to this exclusion is made for motors with more than 25 total
hp which are covered for the policy period if they have been acquired
before the policy period and the insured reports in writing to the
company his intention to insure them within 45 days after they were
acquired or if the motors were acquired during the policy period.
Aircraft Exclusion - The policy excludes the coverage for liability arising
out of the ownership, use, maintenance, loading or unloading of any
aircraft, or its entrustment by an insured. This exclusion also applies to
hovercraft.
War, Nuclear Perils - The policy does not cover loss caused directly or
indirectly by war (whether declared or not declared), civil war, rebellion,
insurrection, revolution, warlike act by a military act or military personnel,
destruction or seizure or use for a military purpose. Note that nuclear
weapon discharge will be deemed a warlike act, even if accidental.
Business Pursuits - The liability section of Homeowners policies do not
state specifically that it will cover only losses arisen out of activities of a
personal nature. This effect is done by the policies' exclusion of most
business activities the insured may engage in. It is important to
understand that the exclusion does not apply to activities which are
common to non-business behaviors. For example, a real estate
salesman on his way to show a property, which is part of his routine
business activities, accidentally pokes a passerby in the eye with his
umbrella. Even though the accident occurs while he is traveling for his
business, the policy will cover because carrying an umbrella is usual to a
non-business activity. On the other hand, if the realtor omitted to
disclose pertinent information about the house, and the buyer suffers a
loss, and sues the realtor, the policy would not apply because the
occurrence resulted from a business activity.
Professional Service Exclusion - The policy does not cover claims arising
out of the rendering of or failure to render a professional service.
Contractual Liability - The policy does not provide coverage to liability
assumed under an agreement or contract, except a written contract
relating to the maintenance, use, or ownership of an insured location or
where liability (not otherwise excluded in the policy) is assumed prior to
an occurrence.
Property in the Care of an Insured - The policy does not provide
coverage for damage to property rented to, occupied or used by or in the
care of the insured. This exclusion does not apply to property damage
caused by fire, smoke or explosion.
Sexual Molestation, Corporal Punishment, Abuse - This policy excludes
liability arisen out of sexual abuse, molestation corporal punishment,
physical or mental abuse.
Controlled Substance Exclusion - The policy does not cover liability for
the possession, use, sale, delivery, manufacture, or transfer of a
controlled substance as defined by the Federal Food and Drug Laws.
Transmission of a Communicable Disease - This policy excludes the
liability for the transmission of a communicable disease.
Liability to Employees - The policy excludes liability of the insured to any
employee for whom the insured is required to provide statutory benefits
under a Workers Compensation or non-occupational disability law or
occupational disease law or to any employee for whom the insured has
voluntarily provided such benefits. Medical Payments to Others is also
not available to any person in these groups.
NEW YORK - All Homeowners policies provide Workers Compensation
insurance coverage for all domestic employees of the insured, whether
they are covered under the state Workers Compensation Laws or not.
Only domestic employees who are employed for 40 hours a week or
more by one employer come under the law and must be covered by
Workers Compensation insurance. There are exceptions. For example,
minors who are 14 years of age or older employed doing chores on a
regular basis or who operate powered lawn mowers or similar
machinery even though they work fewer than 40 hours per week. The
Homeowners policy will cover such individuals for a flat fee added to the
premium.
Nuclear Energy Exclusion - The policy does not provide coverage to
bodily injury or property damage where the insured is also covered by a
nuclear energy liability policy or would be an insured under that policy
except for the exhaustion of the nuclear energy liability policy's limit of
liability. A nuclear energy liability policy is issued by the American
Nuclear Insurers, Mutual Atomic Energy Liability Underwriters, or Nuclear
Insurance Association of Canada.
Coverage E - Personal Liability
All forms of these policies include a separate section on personal liability
insurance. The liability section, which is inserted into every
homeowners policy, is designed to protect the insured and his family
members against almost all liability arising out of his personal
(non-business) activities, except for automobile liability.
The liability section is comprised of two parts - the first part, coverage E,
provides liability insurance. The second part, coverage F, provides
coverage for certain medical expenses incurred by persons who come
on the insured location or are injured by an activity of the insured. Each
of these coverages is discussed separately.
WHAT IS COVERED
Bodily Injury and Property Damage - The policy will pay, up to its limit,
damages for which the insured is liable, arising out of bodily injury or
property damage due to an occurrence.
Bodily injury - is defined as bodily harm, shock, fright, mental anguish,
sickness or disease, including required care, loss of use and resulting
death.
Property damage - physical injury to, destruction of, or loss of use of
tangible property.
Occurrence - an accident, including continuous or repeated exposure to
substantially the same general harmful conditions, which results during
the policy period in bodily injury and/or property damage.
NOTE: The policy will pay for such claims arising out of the insured
premises, and also for occurrences which give rise to claims from personal
acts of the insured away from the premises, e.g., in a shopping mall. It
also extends to injuries caused by a residence employee of the insured or
an animal owned by the insured.
Insured Location - The policy covers claims arising out of the insured
premises indicated on the policy Declarations and any other premises
acquired by the insured during the policy period for use as a residence,
any premises where the insured is temporarily residing and not owned,
vacant land (but not farm land) owned by or rented to the insured, land
owned by or rented to an insured on which a single family or two family
home is being built for the insured as a residence, premises rented
occasionally to an insured for non-business use and individual or family
cemetery plots or burial vaults of an insured.
Defense - In addition, the policy will pay for the cost of the defense.
These expenses will be paid by the insurer, even if the lawsuit brought
against the insured is groundless, false or fraudulent. This expense is
payable in addition to the claim which the company will pay. The insurer
retains the right to settle any claim or lawsuit it deems appropriate.
There are situations in which no insurance is provided, and they will be
discussed in the section on Medical Payments.
First Aid Expense - The policy will pay for first aid expenses incurred by
others (but not any insured under the policy) for bodily injury covered
under the policy.
Defense Expenses - The policy will pay the expenses arisen in the
defense of any lawsuit under the policy and any costs levied against the
insured.
Also, the company will pay for the premiums on any bonds required in a
lawsuit defended by the insurer up to the amount of the premium for the
bond amount require.
Also, the company will reimburse the insured for the reasonable
expenses incurred by an insured at the insurer's request, including
actual loss of earnings up to $250 per day incurred in assisting in an
investigation or defense of the lawsuit.
The company will also pay for the interest on the entire judgment which
accrues after the judgment is rendered and before the insurer pays the
part of the judgment for which the policy is liable.
Also, the company pays any pre-judgment interest awarded against the
insured.
NOTE: While this expense is covered under the policy, it is payable as a
part of the policy limits and not as additional coverage over and above
those limits.
Damage to the Property of Others - The insurer will pay up to $1,000 per
occurrence for damages to the properties of others caused by the
insured.
This section does not apply to any amount recoverable for property
damage under Section I (section covering the home) of the policy.
Loss Assessment - The policy will pay up to $1,000 towards an
assessment charged to the insured by an association of property
owners where the assessment is made as a result of a loss to which
the liability section of the policy applies.
CAUSES OF LOSS NOT COVERED
Intentional Acts - There is no coverage for bodily injury or property
damage which is a result expected or intended by an insured, except
when such insured is below the age of 13, in which case, the policy
would provide coverage.
Motor Vehicle Liability - The policy does not provide coverage for liability
arising out of the ownership, use, loading or unloading of motor vehicles,
including trailers owned by or operated by or rented or loaned to an
insured nor the entrustment by the insured of a motor vehicle or
motorized land conveyance to any person. Also not covered is the
vicarious parental liability for the actions of a child or minor in a
conveyance excluded above.
An exception is made for a trailer not towed by or carried on a motorized
land conveyance or a motorized land conveyance designed for
recreational use off public roads, not subject to state motor vehicle
registration which is not owned by an insured or owned by an insured
and on an insured location. An exception is also made for a motorized
golf cart or a vehicle not subject to state motor vehicle registration used
to service an insured's residence, or one designed for assisting the
handicapped.
Watercraft - The policy does not provide coverage for liability arising out
of the ownership, use, maintenance, loading or unloading of watercraft
with inboard or inboard-outdrive motor power owned by an insured; or
with inboard or inboard-outdrive motor power of more than 50 hp rented
by an insured; or a sailing vessel, with or without auxiliary power, 26
feet or higher in length owned or rented by an insured; or powered by
one or more outboard motors with more than 25 total hp if the outboard
motor is owned by an insured.
An exception to this exclusion is made for motors with more than 25 total
hp which are covered for the policy period if they have been acquired
before the policy period and the insured reports in writing to the
company his intention to insure them within 45 days after they were
acquired or if the motors were acquired during the policy period.
Aircraft Exclusion - The policy excludes the coverage for liability arising
out of the ownership, use, maintenance, loading or unloading of any
aircraft, or its entrustment by an insured. This exclusion also applies to
hovercraft.
War, Nuclear Perils - The policy does not cover loss caused directly or
indirectly by war (whether declared or not declared), civil war, rebellion,
insurrection, revolution, warlike act by a military act or military personnel,
destruction or seizure or use for a military purpose. Note that nuclear
weapon discharge will be deemed a warlike act, even if accidental.
Business Pursuits - The liability section of Homeowners policies do not
state specifically that it will cover only losses arisen out of activities of a
personal nature. This effect is done by the policies' exclusion of most
business activities the insured may engage in. It is important to
understand that the exclusion does not apply to activities which are
common to non-business behaviors. For example, a real estate
salesman on his way to show a property, which is part of his routine
business activities, accidentally pokes a passerby in the eye with his
umbrella. Even though the accident occurs while he is traveling for his
business, the policy will cover because carrying an umbrella is usual to a
non-business activity. On the other hand, if the realtor omitted to
disclose pertinent information about the house, and the buyer suffers a
loss, and sues the realtor, the policy would not apply because the
occurrence resulted from a business activity.
Professional Service Exclusion - The policy does not cover claims arising
out of the rendering of or failure to render a professional service.
Contractual Liability - The policy does not provide coverage to liability
assumed under an agreement or contract, except a written contract
relating to the maintenance, use, or ownership of an insured location or
where liability (not otherwise excluded in the policy) is assumed prior to
an occurrence.
Property in the Care of an Insured - The policy does not provide
coverage for damage to property rented to, occupied or used by or in the
care of the insured. This exclusion does not apply to property damage
caused by fire, smoke or explosion.
Sexual Molestation, Corporal Punishment, Abuse - This policy excludes
liability arisen out of sexual abuse, molestation corporal punishment,
physical or mental abuse.
Controlled Substance Exclusion - The policy does not cover liability for
the possession, use, sale, delivery, manufacture, or transfer of a
controlled substance as defined by the Federal Food and Drug Laws.
Transmission of a Communicable Disease - This policy excludes the
liability for the transmission of a communicable disease.
Liability to Employees - The policy excludes liability of the insured to any
employee for whom the insured is required to provide statutory benefits
under a Workers Compensation or non-occupational disability law or
occupational disease law or to any employee for whom the insured has
voluntarily provided such benefits. Medical Payments to Others is also
not available to any person in these groups.
NEW YORK - All Homeowners policies provide Workers Compensation
insurance coverage for all domestic employees of the insured, whether
they are covered under the state Workers Compensation Laws or not.
Only domestic employees who are employed for 40 hours a week or
more by one employer come under the law and must be covered by
Workers Compensation insurance. There are exceptions. For example,
minors who are 14 years of age or older employed doing chores on a
regular basis or who operate powered lawn mowers or similar
machinery even though they work fewer than 40 hours per week. The
Homeowners policy will cover such individuals for a flat fee added to the
premium.
Nuclear Energy Exclusion - The policy does not provide coverage to
bodily injury or property damage where the insured is also covered by a
nuclear energy liability policy or would be an insured under that policy
except for the exhaustion of the nuclear energy liability policy's limit of
liability. A nuclear energy liability policy is issued by the American
Nuclear Insurers, Mutual Atomic Energy Liability Underwriters, or Nuclear
Insurance Association of Canada.
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MY Insurance Agency
The materials on this website are meant to
be informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.
be informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.