Question

Martha rents an apartment and is the named insured under a Homeowners 4 policy (contents broad form) with a liability limit of $100,000 per occurrence and $1000 medical payments. For each of the following situations, indicate to what extent, if any, the loss is covered under Section II of Martha's homeowner’s policy. Assume there are no special endorsements, and each situation is an independent event.
a. Martha attends a party at a friend's house. She accidentally burns a hole in a couch with her cigarette.
It will cost $500 to repair the damaged couch.
b. Martha rents a snowmobile at a ski resort and accidentally collides with a skier. Martha is sued for $200,000 by the injured skier.



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  • CreatedJanuary 30, 2015
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