Rhode Island Insurance Adjuster Exam

Does a homeowner's liability policy cover personal injuries of the insured?

1. Yes, always

2. No, it covers third-party injuries

3. Only if the injury occurs at home

4. Yes, but with a limit

The correct answer is: No, it covers third-party injuries

A homeowner's liability policy is designed primarily to provide coverage for injuries and damages that third parties sustain while on the insured property or due to the insured's activities. This type of policy does not cover personal injuries sustained by the insured or members of their household. The purpose of the liability coverage is to protect the insured from claims made by others, ensuring they have financial support in the event they are found liable for a covered incident. This means that if someone else is injured on the insured property or if the insured's actions cause harm to another person, the liability policy would respond, covering legal expenses, settlements, or judgments up to the policy limits. Personal injuries sustained by the insured individual themselves are not included in this liability coverage, as the policy is not meant to serve as a personal health or accident insurance policy. Thus, the correct understanding of a homeowner's liability policy is that it focuses exclusively on third-party claims, reinforcing the point that the policy does not extend to cover the insured's injuries.