Coverage E in Homeowners and Habitational package policies responds to all of the following instances except?

Coverage E in homeowners and habitational package policies typically provides liability protection for personal liability claims. This includes coverage for bodily injury and property damage that occurs as a result of the insured's actions in their personal capacity, rather than in a business context.

The correct choice highlights a situation that does not fall under this coverage. Property damage to a third party due to the actions of a named insured who is not residing at the premises generally would not be covered because the liability insurance applies specifically to activities conducted by the insured at their residence or under their direct control. If the named insured is not residing at the premises, the connection to the liability coverage is diminished, and therefore, it does not meet the criteria for Coverage E.

In contrast, the other instances reflect scenarios that are typically covered. For example, bodily injury or property damage caused by the insured from a non-business activity is indeed within the scope of Coverage E, as are injuries to resident employees due to the insured's negligence and fire damage at a rented property due to a common household activity. All these situations have direct links to the personal activities of the insured, making them eligible for liability coverage under the homeowners or habitational policies.