Polly borrows her neighbor's self-propelled lawn mower after the neighbor's mower is in repair. The mower is damaged when it runs into a pool. The policy's damage to property of others coverage covers the replacement cost for all of the following reasons, except which?

• A. Polly is legally liable for the loss.
• B. Payment under the coverage does not require liability.
• C. The coverage applies to damage to property of others caused by the insured.
• D. The coverage is limited to property damaged on Polly's premises.

Answer: (A)

Damage to property of others coverage is designed to pay for damage you cause to someone else’s property, often without requiring that you be legally liable in a court finding. It can cover replacement cost up to the policy limit when the insured damages another person’s property, and it often applies to property damage that occurs on the insured’s premises.

In this scenario, Polly damaged her neighbor’s mower, which is property of another. The incident happened on Polly’s premises when the mower collided with a pool. Because the loss involves someone else’s property and occurs on Polly’s property, the coverage would typically pay replacement cost even if Polly isn’t legally liable. The statement that Polly is legally liable for the loss is not a requirement for this coverage to pay, so that part does not fit with how the coverage operates. The other points describe why the coverage would apply.