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

Coverage E, which pertains to Personal Liability in a Homeowner's policy, is expressed on a per occurrence basis. This means that the policy specifies a limit for coverage regarding each individual incident that results in liability claims. For example, if there were multiple incidents that occurred within a policy period, each incident would be subject to the specified limit, potentially allowing for multiple payments up to that limit given that each incident is treated separately.

This structure is crucial for protecting the insured, as it ensures that each specific liability situation is adequately covered without being limited by an overarching annual maximum. It reflects the practical need for homeowners to have sufficient coverage in the event of multiple claims arising from different circumstances throughout the year.

By contrast, some of the other terms mentioned do not accurately describe how the limits are applied in the context of a homeowner's liability policy. Monthly limits do not typically apply in this context, nor do terms like per incident, which isn't the standard phrasing used in insurance policies. Hence, the correct understanding is that Coverage E limits are specifically designed around each occurrence.