Final answer:
Liability losses from a lawsuit involving property damage are covered by the liability section of a Personal Liability Supplement. Coinsurance is a key term where the insured and the insurer share the cost of the loss. This portion of the policy covers the insured for liabilities incurred from damaging someone's property.
Step-by-step explanation:
Liability losses from a lawsuit involving property damage are typically covered by the liability portion of a Personal Liability Supplement. This is a part of a personal insurance policy that provides protection against losses that a policyholder becomes legally obligated to pay due to bodily injury or property damage inflicted on others. In cases involving property damage, the policy would respond to claims that come from accidents or unintentional damage caused by the insured to someone else's property.
When dealing with such incidents, the concept of coinsurance may come into play. This is a situation where the insurance policyholder pays a percentage of the loss, and the insurance company pays the remaining cost according to the terms of the policy. This coinsurance clause is designed to encourage the insured to insure the property to a sufficient value and can affect the payout in a liability claim if the property was not insured to the correct value.
It should also be noted that in a limited liability partnership, partners are protected by limiting their liability to their investment in the company. However, this doesn't directly relate to personal liability insurance for individuals, which instead aims to safeguard personal assets from lawsuits related to property damage or injury claims.