Misunderstood Personal Lines Issues (Part 2)

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Property damage to property in your care, custody, or control

The questions

Am I covered for damage I cause to other people's property?

What are the limitations or exclusions under my policy for these types of claims?

What if my kids are involved in some kind of act of "malicious mischief"?

Let's look at the policy...

Homeowner's - Section I:

Coverage A - Dwelling

Coverage B - Other Structures - Residence Premises Only

Coverage C - Personal Property

Coverage C covers personal property used by an "insured" while it is anywhere in the world

At your request, personal property owned by:

Others while the property is on the part of the "residence premises" occupied by an "insured"

A guest or a "residence employee," while the property is in any residence occupied by an "insured".

Subject to usual limitations for property away from an "insured's" residence and normal special limits of liability for things like jewelry, money, etc.

Homeowner's Section II - Liability:
Coverage E-Personal Liability does not apply to:
"Property damage" to property rented to, occupied or used by or in the care of the "insured." This exclusion does not apply to "property damage" caused by fire, smoke or explosion.

Additional Coverages
We will pay, at replacement cost, up to $500 per "occurrence" for "property damage" to property of others caused by an "insured."

The answers

Am I covered for damage I cause to other people's property?
If you get the additional coverage, your policy will pay, at replacement cost, up to $500 per "occurrence" for "property damage" to property of others caused by an "insured."

What are the limitations or exclusions under my policy for these types of claims?
The policy does not pay for "property damage":

To the extent of any amount recoverable under Section I of this policy;

Caused intentionally by an "insured" who is 13 years of age or older;

To property owned by an "insured";

To property owned by or rented to a tenant of an "insured" or a resident of your household, or;

Arising out of:

A "business" engaged in by an "insured";

Any act or omission in connection with a premises owned, rented or controlled by an insured, other than the 'insured location";

Aircraft, watercraft or motor vehicles or all other motorized land conveyances; covers motorized land conveyances designed for recreational use off public roads, not subject to motor vehicle registration and not owned by an "insured".

What if my kids are involved in some kind of act of "malicious mischief"?
The policy will not pay for property damage caused intentionally by an "insured" who is 13 years of age or older.

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.