Are claims paid under section 2 of a homeowners policy subject to a standard $250 deductible?

Claims paid under section 2 of a homeowners policy, which typically covers personal liability and medical payments to others, are not subject to a deductible. This section of the policy provides coverage for incidents such as bodily injury or property damage caused by the insured to others, and medical payments for injuries that occur on the insured’s property or as a result of their actions.

A deductible is generally applied to property damage claims under section 1 of homeowners policies, which pertains specifically to dwelling and personal property losses. Section 2 does not have this deductible structure because it focuses on liability exposures rather than direct property damage. Therefore, indicating that claims under section 2 are subject to the standard deductible is inaccurate, leading to the correct response that they are, in fact, not subject to a standard deductible.

This differentiation is crucial for understanding how homeowners insurance policies function, and it highlights the specific nature of liability coverage as separate from physical damage coverage.