Principles of Risk Management and Insurance, 13th Edition

Section II Additional Coverages

A homeowners policy automatically includes several additional coverages, including coverage for claim expenses, first-aid expenses, damage to property of others, and loss-assessment charges.

Claim Expenses

Claim expenses are paid as an additional coverage. The insurer pays the court costs, attorney fees, and other legal expenses incurred in providing a legal defense. The claim expenses are paid in addition to the policy limits for liability damages.

The insurer also pays the premiums on bonds required in a suit defended by the insurer. For example, a judgment may be appealed, and if an appeal bond is required, the insurer pays the premium.

Reasonable expenses incurred by the insured at the insurer’s request to ...