Which of the following statements regarding the Coverage E limit in the homeowners policy is true?
A)It is an aggregate limit,and once the amount paid for one or more claims reaches the limit,no additional coverage is provided.
B)The limit applies only if a court orders the insured to pay-there is no coverage for settlements reached out-of-court.
C)Any legal defense costs incurred by the insurer are counted against the limit of liability.
D)The limit applies on a per-occurrence basis so more than the limit could be paid during the policy period.

Question

Quizplus · Accepted Answer

The Coverage E limit in a homeowners policy applies on a per-occurrence basis, meaning that the limit is available for each separate incident during the policy period.

Which of the Following Statements Regarding the Coverage E Limit