How does the liability coverage in a homeowners policy typically apply to personal injury?

Liability coverage in a homeowners policy is designed to protect the policyholder from claims arising due to injuries or damage that they may inadvertently cause to others. This coverage typically extends to many scenarios, including both bodily injuries and property damage incurred by others on the insured's property or as a result of the insured's actions.

When it comes to personal injury, which may encompass a range of claims such as slander, libel, and other non-physical forms of harm, the liability coverage is generally interpreted to include incidents that lead to both bodily injury and property damage. This dual-focus is critical for ensuring that homeowners are protected from the financial repercussions of various types of claims made against them.

In contrast, the other options fall short of encompassing the full spectrum of what liability coverage offers. The first option is limited to bodily harm and does not account for property damage. The second option focuses solely on property damage, leaving out the critical aspect of bodily injury. The last option incorrectly states that there is no coverage, which contradicts the fundamental purpose of liability insurance in homeowners policies.