Question

Amber has a Homeowners 3 policy. The dwelling is insured for $75,000 and the replacement cost of the home is $100,000. Amber has $100,000 for Coverage E and $10,000 for Coverage F. Indicate whether or not each of the following losses is covered. If possible, determine the dollar amount of the loss that will be covered by Amber's insurance policy. Clearly identify what section of the policy is controlling and why the event is either covered or not covered. Ignore any deductibles.

Amber's sixteen year old son accidentally injures another player while playing football at the local high school. The other player has medical expenses of $2,800. Amber’s son is also injured and his medical expenses are $1,200.

Answer 1

1.The son is 16 years old--also ,he is a resident of the house hold of Amber & less than 21 yrs. Of age, as required under this policy.

So, the first one, ie. Medical expenses for the other player, $ 2800 is a covered occurrence , under Section II of the HO 3 policy--- for personal Liability coverage

ie. the insured can claim for reimbursement ,under Coverage E , if any claim is brought about , for the medical expenses , $ 2800 , of the other player, even though , it happened in other premises. So, the $ amt. of loss will be $ 2800

This personal liability coverage , available for the insured, is covered irrespective of the place of occurrence.

It reimburses the liability of the insured , to third parties , for covered occurrences.

2.Amber’s son is also injured and his medical expenses are $1,200

Coverage E is for reimbursing the insured against possible claims for bodily-injury-related damages.

&Coverage F is for reimbusring medical expenses payable to others

both for covered occurrences---under Section II of the HO 3 policy.

The above injury to Amber's son does not fall under both. The insured is not covered under Coverage F . And Coverage E is for liability to others' expenses.

So, this is not a covered occurrence & cannot be entertianed under this policy