All Homeowners and other Habitational Package Policies include liability insurance. Coverage E: Personal Liability would respond in all of the following instances, except one. Pick... All Homeowners and other Habitational Package Policies include liability insurance. Coverage E: Personal Liability would respond in all of the following instances, except one. Pick the Exception: a) Bodily Injury or Property Damage caused by the insured arising out of a personal non-business activity b) Bodily Injury suffered by a residence employee as a direct result of the insured's negligence c) Fire damage to a cottage rented by the insured when a burning log rolled out of the fire place d) Property damage to a third party resulting from the personal actions of a Named Insured who does not reside at the insured premises. Read more

Understand the Problem

The question is asking to identify which situation is an exception to the instances where homeowners and other habitational package policies would respond under liability insurance. It presents four scenarios, and the task is to select the one that does not fit the coverage provided.

More Information

Personal liability insurance typically covers personal injury or property damage to others but doesn't extend to property damage to rental properties by the insured.

Tips

A common mistake is confusing liability coverage with property coverage; liability insurance does not cover damage to the insured's rented or owned properties.

Sources

• What Is Personal Liability Insurance Coverage? - Progressive - progressive.com
• What is Personal Liability Insurance? - Nationwide - nationwide.com