How are Coverage E (Personal Liability) limits expressed in a Homeowner's policy?

In a Homeowner's policy, Coverage E (Personal Liability) limits are expressed "per occurrence." This means that the limit applies to each individual event or accident that results in a liability claim. For example, if a homeowner is held responsible for injuries occurring during a party they hosted, the policy would cover claims related to that specific incident up to the limit of liability specified in the policy.

If there were multiple incidents that led to liability claims, each would be handled separately, with its own limit available for each occurrence, assuming the policy retains adequate overall limits. This structure is important for ensuring that policyholders have sufficient coverage for multiple claims arising from different events throughout the policy period, rather than having a total cap on the coverage for the entire policy year.

Other options like "per person," "per policy," and "per year" do not accurately reflect how personal liability limits are structured in homeowners' insurance. "Per person" would imply that there is a limit for each affected individual, which does not align with how occurrences are treated. "Per policy" would suggest a single limit applies to all claims, which is contrary to the individual event handling of liability. "Per year" misrepresents the nature of coverage, as it is