What is the added loss assessment coverage for named personal injury offenses in a homeowners policy with a Personal Injury endorsement?

The addition of the Personal Injury endorsement to a homeowners policy specifically enhances coverage for named offenses that can lead to personal injury claims, such as false arrest, defamation, and invasion of privacy. With this endorsement, the coverage limit for loss assessment in relation to these offenses is typically set at $1,000. This coverage is particularly important as it provides financial protection for homeowners in the event they are found liable for these specific types of personal injury claims.

The rationale for setting this limit at $1,000 is based on the insurance industry’s risk assessment and the likelihood of such claims arising, which are often less frequent than other types of liability claims in a standard homeowners policy. This makes $1,000 an appropriate limit to offer policyholders some level of protection without overly increasing premiums.