Which of the following best describes the coverage for personal injury under the homeowners policy?

The correct description of the coverage for personal injury under a homeowners policy is that it covers loss for false arrest, slander, and invasion of privacy. Personal injury coverage is designed to protect insured individuals from claims that arise from non-physical injuries that can occur due to the actions or omissions of the insured. This includes offenses such as defamation (slander and libel), wrongful eviction, and invasion of privacy.

This coverage is particularly important as it addresses legal liabilities that can arise in everyday situations, such as when someone feels wronged by false statements or actions taken by the insured party. These types of claims can lead to significant financial damages, and personal injury coverage helps safeguard homeowners from these potential liabilities.

The other options describe limitations or exclusions that do not reflect the actual scope of personal injury coverage in a homeowners policy. For instance, limiting coverage to physical injuries ignores the broader range of claims that personal injury coverage is intended to protect against, while solely covering mental anguish fails to acknowledge that personal injury issues often stem from specific actions that cause reputational harm. An exclusion entirely from the policy is inaccurate because many homeowners policies do include personal injury coverage, though the specifics can vary widely.