What is NOT covered under HO-3 policies regarding liability?

HO-3 policies are a type of homeowners insurance that provide broad coverage for both the dwelling and personal property, along with liability coverage. However, they explicitly exclude certain types of claims, particularly those involving intentional acts.

The correct answer highlights that intentional damage caused by the insured is not covered under HO-3 policies. This is because liability insurance is designed to protect against accidents and unintentional harm. If an insured individual intentionally causes damage or injury, this would go against the principles of liability insurance. Coverage limits are intended to prevent individuals from benefiting from their own wrongful actions. Therefore, any claims regarding injuries or damages that the insured would deliberately inflict are excluded from liability coverage.

In contrast, injuries occurring on the policyholder’s property, damage caused by household pets, and injuries to invited guests are typically covered under the liability portion of an HO-3 policy, making it crucial for policyholders to understand these distinctions when navigating their coverage.