Registered Insurance Brokers of Ontario (RIBO) Practice Exam

The main focus of a Homeowners Liability policy is indeed to provide personal liability protection. This type of coverage is essential for homeowners as it protects them against claims made by others for injuries or property damage that occur on their property or as a result of their actions. For instance, if a guest is injured while visiting your home, this policy would help cover legal costs and any damages awarded.

Personal liability protection is crucial not just for the financial aspect, but it also offers peace of mind to homeowners, knowing they have some protection against potential lawsuits. This coverage typically extends beyond just injuries on the property to other incidents, such as an accident caused by the homeowner’s actions, even if those actions occur away from the home.

In contrast, options related to property damage or health coverage do not accurately reflect the primary purpose of this type of insurance. Homeowners policies may also include other types of coverages, but the key function of liability protection stands out as the primary focus.