Virginia Administrative Code
Title 14 - INSURANCE
Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE
Chapter 342 - RULES GOVERNING STANDARDS FOR THE CONTENT OF HOMEOWNERS INSURANCE POLICIES
Section 14VAC5-342-90 - Personal liability coverage
Universal Citation: 4 VA Admin Code 5-342-90
Current through Register Vol. 41, No. 3, September 23, 2024
A. Insurers shall provide personal liability coverage as follows:
1. Insurers shall pay on
behalf of the insured all sums that the insured is legally obligated to pay as
damages for bodily injury or property damage caused by a covered
occurrence.
2. Insurers shall
defend a suit against the insured seeking damages for bodily injury or property
damage, even if any of the allegations of the suit are groundless, false, or
fraudulent.
3. Insurers shall
investigate any claim or suit and may settle any claim or suit as it deems
expedient.
4. Insurers shall not be
obligated to pay a claim or judgment after the limit of liability has been
exhausted by payment of judgments or settlements.
B. In addition to the limit of liability applicable to personal liability coverage, insurers shall provide coverage for any of following personal liability claims expenses:
1. All expenses incurred by the insurer and
all costs taxed against an insured in a suit defended by the insurer;
2. All premiums on appeal bonds required in a
suit; premiums on bonds to release attachments in a suit for an amount not more
than the applicable limit of liability of the policy; and the cost of bail
bonds required of an insured because of an occurrence to which the policy
applies, of at least $250 per bail bond, except the insurer shall have no
obligation to apply for or furnish the bonds;
3. Pre-judgment interest incurred;
4. Post-judgment interest on the part of a
judgment that does not exceed the limit of the insurer's liability;
and
5. Reasonable expenses incurred
by an insured of at least $50 per day. Reasonable expenses include (i) loss of
earnings except loss of other income, (ii) vacation time, and (iii) other
benefit loss because of an insured's attendance at hearings or trials or
assistance with the investigation as requested.
C. In addition to the limit of liability applicable to personal liability coverage, insurers shall provide coverage for the following:
1. Insurers shall pay for
damage to property of others caused by an insured during the policy period at
the actual cash value or the cost to repair or replace the damaged property
with other property of like kind and quality.
a. Insurers may limit this coverage to $250
per occurrence.
b. Insurers may
exclude damage to property of others:
(1)
Caused intentionally by an insured 13 years of age or older;
(2) Rented to an insured;
(3) Owned by or rented to (i) roomers, (ii)
boarders, (iii) tenants, or (iv) residents of the insured's
household;
(4) Arising out of (i)
an act or omission in connection with a premises owned, rented, or controlled
by an insured other than the insured premises; (ii) business pursuits or
professional services; or (iii) the ownership, maintenance, operation, use,
loading, or unloading of a vehicle, trailer or semi-trailer, farming machinery
or equipment, aircraft, or watercraft; or
(5) If the property is covered elsewhere
under the policy.
2. Insurers shall pay expenses incurred by an
insured at the time of an occurrence for first aid to others for bodily injury
covered under the policy.
Statutory Authority: §§ 12.1-13, 38.2-223, and 38.2-2108 of the Code of Virginia.
Disclaimer: These regulations may not be the most recent version. Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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