What type of claims are typically covered under a homeowners insurance policy?

Homeowners insurance policies are designed to provide comprehensive coverage for a variety of risks associated with owning a home. The correct choice highlights the key areas covered under such policies: property damage, personal liability, and additional living expenses.

Property damage coverage protects the physical structure of the home and personal belongings inside it from various perils, such as fire, theft, or storms. Personal liability coverage protects the insured against claims of bodily injury or property damage to others that occur on the property. For instance, if someone slips and falls on the property, the policy would cover legal costs and potential settlements. Additional living expenses coverage comes into play if the home becomes uninhabitable due to a covered loss, helping to cover costs such as hotel stays or meals.

The other options address specific scenarios that are not typically encompassed by a standard homeowners policy. Personal injury claims in the home (unrelated to the policyholder's liability), vehicle damage, and exclusive water damage claims from plumbing issues may fall under other types of insurance or may have specific exclusions in homeowners policies. Thus, the broad and inclusive nature of coverage in property damage, personal liability, and additional living expenses is what makes the correct answer particularly accurate.