What form of coverage can be included under the Dwelling Policy to cover third-party liability?

The Personal Liability Supplement is specifically designed to provide liability coverage for a homeowner against claims of bodily injury or property damage that may occur on their property or as a result of their activities. This is an important aspect of Dwelling Polices, which primarily cover property but can be enhanced to include liability protection.

This supplement ensures that if a third party suffers injury or their property is damaged due to the actions of the insured, the policy will cover legal costs, settlements, or judgments up to the policy limits. This addition is crucial for protecting the homeowner from the financial fallout of such liability claims.

In contrast, the other options either do not specifically cater to liability coverage or are not standard elements included in the Dwelling Policy, making them less relevant for this context. For example, the Property Damage Supplement typically pertains to covering damages to the dwelling itself rather than third-party liability. Personal Injury Protection is more commonly associated with auto insurance rather than property liability. The General Liability Extension may apply in different contexts but does not directly refer to a provision within a Dwelling Policy.

Thus, the Personal Liability Supplement is the correct choice as it directly addresses third-party liability coverage within the framework of a Dwelling Policy.