Liability Coverage

So as we stated, all  Florida homeowners policies include liability coverage in Section II of a homeowners policy.  And the coverage is virtually the same for all the Homeowners form HO-2 through HO-8.  This coverage contains two coverages as well known as E – Liability and F- Medical Payments to Others.  (Parts A-D refer to Section I of a home policy or the property part).

Quite simply, Coverage E protects the insured from legal liability for bodily injury (bi) or property damage (pd) to others.  Coverage F pays for medical and other related expenses for members of the public injured through personal activities, without regard to the insured’s legal liability.

Personal, non-business activities are covered anywhere, not just on the property.  Liability coverage (or Section II) also covers liability arising from “insured locations” which includes:

  • the primary residence in the Declarations
  • newly acquired residences
  • locations of temporary residence
  • vacant land owned by or rented to the insured
  • the land of the primary dwelling
  • cemetery plots

Coverage Exclusions of a Personal Homeowners Policy’s Liability Section

So what is not covered by Section II?  Obviously any business related activities, motorized land conveyances, and watercraft.

Now of course there are exclusions to the exclusions.  For instance, the policy does not exclude the following (nor does it exclude similar pursuits)

  • the occasional rental of the dwelling
  • activities which are usual to non-business pursuits
  • the partial rental of the residence

There are of course exceptions as well to the watercraft and motorized conveyances too.  Sailboats for instance are included if they are of a certain size.

Additional Coverages of a Homeowners Liability Policy in Florida

Claims Expenses – the company pays the costs of defense, premium on appeal bonds, interest on judgements, prejudgment interest, and reimbursements to the insured of defense related expenses, including $250 per day in loss earnings.

First Aid Expenses – provides for reimbursement of expenses incurred when offering first aid to others at the time of the accident.  Please don’t ask for an example of this as I am at a loss.

Damage to the Property of Others – Up to $1,000 coverage is provided for damage to property of others that is caused by an insured, without regard to legal liability.

Loss Assessment – Up to $1,000 applies to assessments against the insured by a homeowners association as a result of loss to the association.  This will only pay out if the occurrence is at the residence premises to which Section II would apply or the acts of directors, officers, or trustees of the condo.

Limits of Liability Coverage of a Florida Homeowners Policy

The Section II basic limit of liability is $100,000 per occurrence for Coverage E and $1,000 per person for Coverage F.  An insured can purchase higher limits of course.  Florida Statute imposes mandatory vicarious liability on parents whose children vandalize public property.  I bring this up as many companies put a cap on this kind of liability of $10,000.  If your children are naughty, you will want to review this option with us.  So call us at 888-668-8398.

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