Question 69

He should add the Personal Injury endorsement.

To ensure liability protection against claims for false arrest, libel, and slander, the insured should add the Personal Injury endorsement to their HO-3 policy.

A) tell him he should add the Personal Injury endorsement.

This option is correct because adding the Personal Injury endorsement to a Homeowners policy specifically extends liability coverage to include claims for false arrest, libel, and slander, which are not typically covered under the basic policy.

B) tell him not to worry; this coverage is in the basic policy.

This option is incorrect because the basic HO-3 policy does not include coverage for personal injury claims such as false arrest, libel, or slander. Without the endorsement, the insured would not be protected against such claims.

C) tell him this coverage is not available under a Homeowners policy. He must buy a commercial liability coverage.

This option is also incorrect. While it is true that a standard Homeowners policy does not cover personal injury claims, the Personal Injury endorsement is available for Homeowners policies, making commercial liability coverage unnecessary for this specific need.

D) suggest he add the Ordinance or Law coverage.

This option is incorrect because Ordinance or Law coverage pertains to costs associated with rebuilding or repairing a home to comply with current building codes, not liability for claims of false arrest, libel, or slander.

Conclusion

The correct answer is definitively right because the Personal Injury endorsement directly addresses the liability concerns of false arrest, libel, and slander, which are not covered by the basic policy. All other options either misstate the coverage available under a Homeowners policy or suggest irrelevant endorsements that do not provide the necessary protection.