The MAXIMUM amount a homeowners policy will pay in the event of a covered loss under Section II - Personal Liability is the

The deductible is the amount the policyholder must pay out of pocket before the insurance coverage kicks in. It does not represent a maximum payout but rather a cost-sharing mechanism that reduces the insurer's liability for smaller claims. Deductibles apply to the claim amount rather than the overall limits set for liability coverage.

Coinsurance refers to the percentage of covered losses that the policyholder must pay after meeting the deductible, typically used in property insurance. It does not set a maximum payout; instead, it divides costs between the insurer and the insured based on the agreed percentage. This concept is not applicable to the personal liability limits established in the homeowners policy.

Medical payments coverage provides reimbursement for medical expenses incurred by others due to injuries sustained on the insured's property, regardless of fault. While it is a component of personal liability coverage, it is separate from the overall liability limits and does not represent the maximum payout for liability claims under the policy.