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Beverly has an HO-2 contract with a $100,000 per occurrence limit on the Liability coverage. She rents out her basement to a college student, and the student's personal property is damaged by Beverly's negligence. The student sues her for $3,000. How much will the HO policy pay for this loss?
$0 is paid because this liability is excluded
$3,000 is paid under the property section and not the legal liability section
$0 is paid due to the care, custody and control exclusion
$3,000 is paid because the loss is not excluded
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