Part $2$: Analyze Liability Coverage Evaluate the liability implications of the fire spreading to the neighbor's detached garage: $1.$ Neighbor's Garage $-$ Determine how Section II$,$ Coverage E $($Personal Liability$),$ of the HO$-3$ policy applies to the $\backslash$$$40,000$ damage. $-$ Discuss any exclusions or conditions that might limit liability coverage. $2.20-$Year$-$Old Son $-$ Explain whether the insured's son qualifies as an insured under the $\backslash (\backslash$mathrm$\{$HO$\}-3\backslash )$ policy for liability coverage purposes. Part $3$: Additional Questions $1.$ House and Attached Garage $-$ How much will the insurer pay to rebuild the house? What portion will the insured need to cover? $-$ Does the policy treat the attached garage differently from the house itself? Why or why not? $2.$ Personal Property $-$ If the personal property includes items like jewelry or electronics, what sublimits might apply? $-$ Would replacement cost coverage for personal property change the settlement? $3.$ Four$-$Wheeler $-$ Why is the four$-$wheeler likely excluded from the $\backslash (\backslash$mathrm$\{$HO$\}-3\backslash )$ policy? $-$ What steps should the insured take to ensure the four$-$wheeler is properly insured? $4.$ Truck and Auto $-$ What is the primary reason motor vehicles are excluded from the $\backslash (\backslash$mathrm$\{$HO$\}-3\backslash )$ policy? $-$ How does the PAP calculate the settlement for the truck and auto? $5.$ Neighbor's Liability $-$ How does Section II$,$ Coverage E$,$ respond to the liability claim for the neighbor's detached garage? $-$ Would the liability coverage apply if the son intentionally started the fire? Students should provide written responses to the prompts, including calculations and explanations for their answers.