Which statement is NOT true of liability policies?

Liability policies are designed primarily to protect the insured from financial losses stemming from claims made by third parties. The core purpose of these policies is to cover damages or injuries that the insured may cause to others.

The statement regarding coverage for third-party damages is accurate, as liability insurance always addresses the responsibility of the insured in causing harm to others. Similarly, coverage for personal injury to third parties is also a hallmark of liability policies, ensuring that those harmed can seek compensation for their injuries.

Regarding the coverage for newly acquired properties, this is generally included in many liability policies, offering flexibility and reassurance to the insured that newly acquired properties will also be covered under their existing liability provisions.

On the other hand, stating that liability policies cover damage to the insured's own property is incorrect. Such damages are typically addressed by property insurance policies rather than liability coverage. Liability insurance does not provide protection for the insured's own assets; it focuses exclusively on the liabilities that arise when the insured affects third parties, whether through property damage or personal injury. This fundamental distinction clarifies why the statement about covering the insured's own property is not true of liability policies.