Idaho Property and Casualty Practice Exam 2025 - Free Practice Questions and Study Guide

Liability coverage is specifically designed to protect against loss or damage to someone else's property. This type of insurance kicks in when you are held legally responsible for causing damage to another person's property, such as if you accidentally break a neighbor's window or damage their vehicle. In such cases, liability coverage will help cover the costs associated with the repairs or replacement of the damaged property, protecting you from financial loss and potential legal claims.

Other types of coverage mentioned serve different purposes. Personal property coverage focuses on protecting your own belongings from loss or damage. Property damage coverage typically refers to specific types of insurance that may not encompass liability aspects. Loss of use coverage deals with the inability to use your own property due to a covered loss, rather than covering damage to someone else's property. Each of these options addresses different scenarios and risks, but it is liability coverage that is directly relevant to protecting against loss or damage to others' property.