If the insured borrows a lawnmower and damages it, how would the loss be treated under a Comprehensive Personal Liability policy?

• A. Covered in full
• B. Covered up to the policy limit
• C. Covered under Voluntary Property Damage
• D. Not covered

Answer: (C)

In a Comprehensive Personal Liability policy, the handling of losses related to borrowed property is generally addressed under the provisions for Voluntary Property Damage. This coverage typically applies when the insured accidentally damages someone else's property, such as a borrowed lawnmower, and provides a way for the insured to take responsibility for such damages without a formal liability claim being lodged against them.

Voluntary Property Damage is designed to cover instances where the insured takes on the financial responsibility for unintentional damages, even if the property wasn't owned by the insured. It allows for the adjustment of the insured's liability in a more personal sense, reflecting the insured's willingness to repair or replace the damaged item.

The other options typically do not apply in this scenario. Comprehensive Personal Liability policies generally exclude coverage for items that are borrowed. Thus, the loss would not be covered in full or up to the policy limit since these conditions usually pertain to owned property under the insured's control. Additionally, understanding that damages are assessed in the context of liability specific to ownership clarifies why they do not fit the traditional comprehensive coverage definitions. Therefore, Voluntary Property Damage becomes the appropriate coverage option for this situation.