Contractual liability and owned property exclusions apply to liability coverage

Contractual liability

This exclusion applies only to the liability coverage. It does not apply to the medical payments coverages. The contractual liability exclusion has two parts. First, coverage is precluded for loss assessments by homeowners associations except as is provided for in the liability additional coverages. Second, this exclusion precludes coverage for liability of an insured under any contract or agreement.

There are two exceptions to this latter portion of the contractual liability exclusion. The exclusion does not apply to written contracts that directly relate to the ownership, maintenance, or use of the insured locations. Nor does this exclusion apply to written contracts under which the insured assumes the liability of others, prior to any occurrence, except as would otherwise be excluded by other policy provisions.

Owned property

This exclusion also applies only to the liability coverage. It precludes coverage for property owned by an insured and applies to costs and expenses incurred by an insured or others to repair, replace, enhance, restore, or maintain such property to prevent bodily injury or property damage to others, whether on or off premises. The purpose of this exclusion is to limit the coverage applicable to an insured's own property to that which is afforded by the first-party property coverages of a homeowners policy.

Rental property

The rental property exclusion applies only to the liability coverage and precludes coverage for property damage to property rented to, occupied by, used by, or in the care of an insured. There is an exception to this exclusion for property damage caused by fire, smoke, or explosion.

Workers compensation

The workers compensation exclusion applies only to the liability coverage and precludes coverage for bodily injury to any person who is eligible to receive benefits provided or required to be provided by any insured under any:

workers compensation law;
nonoccupational disability law; or,
occupational disease law.

In many states now, homeowners policies are required to include workers compensation coverage for residence employees. Under the ISO HO 2 and HO 3 policies, it is added by way of an endorsement to the policy. Many insurers include workers compensation coverage for residence employees (housekeepers, gardeners, nannies, etc. - whether resident or not) within their basic policy forms, usually as one of the liability additional coverages.

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