Purpose of insurance coverage exclusion for owned or rented property

Insurance coverage for owned or transported property

This exclusion precludes coverage for property damage to property owned or being transported by the insured. The purpose of this exclusion is to assure that the correct policy or coverage applies to a given element of loss. The injury or damage to the insured's vehicle is covered under the automobile physical damage portion of the policy.

Injury or damage to an insured's personal property that is the result of an auto accident should be covered under the personal property coverage of the insured's homeowners policy. Injury or damage to personal property of another that the insured was transporting again would be the subject of homeowners policy coverages.

Rented, used or cared for property

This exclusion precludes coverage for property damage to property rented to, used by, or in the care of an insured, and has an exception for property damage to a residence or a garage. The intent of auto policies is to afford coverage for rented or borrowed vehicles under the policy's first-party physical damage coverage, not the liability coverage.

As to personal property that is rented to, used by, or in the care of the insured that is damaged in an auto accident, this exclusion makes clear that it is the insured's homeowners coverages that should apply.

Finally, the exception contained in this exclusion for property damage to residences or private garages rented by, used by, or in the care of an insured recognizes that coverage should exist if you damage a residence or garage by colliding with it while operating your car or truck. This is a type of loss that is within the normal expectations of liability coverage arising out of your use of an automobile - you hit something and damage it, creating liability that your insurance should cover.

Bodily injury to insured's employees

This exclusion is comparable to that contained in the homeowners policies. It precludes coverage for bodily injury to employees of the insured that occur within the course of employment. There is an exception to this exclusion - it does not apply unless workers compensation benefits are required or are available for that employee for that injury.

In practical terms, this means that if you live in a state where persons are required to provide workers compensation insurance for domestic employees, your homeowners policy is likely to include an additional coverage for that obligation.

Thus, this exposure to loss is intended to be covered by the workers compensation additional coverage of your homeowners policy, even if the injury in question arises out of your use of personal vehicles. If you are required to have workers compensation coverage and do not, then the exception to this exclusion applies, with the result that you will be covered for such a loss.

1. Facts about personal injury liability coverage exclusions
Many homeowners policies also include personal injury liability coverage. Under the ISO HO 3 policy, if an insured wishes to add personal injury coverage, it is added b...

2. Duties that apply to the insured in case of an occurrence
This condition comprises six subparagraphs. First, the duties after occurrence condition has an introductory paragraph that states that in case of an occurrence, an ins...

3. Liability policies include the provision of bankruptcy of the insured
Bankruptcy of an insured This provision is required to be included in liability policies in many states. It provides that the bankruptcy or insolvency of an ins...

4. Insurance coverages have various conditions that apply to them
Cancellation The cancellation condition in the standard ISO HO 3 homeowners policy is often superseded by specific states' statutory limitations on cancellation...

5. Structure of the standard personal car insurance policy
Structure of personal car insurance policies As with homeowners policies, there is a standard personal car insurance policy published by the Insurance Services ...

6. Concepts of the personal car insurance policy are very complex
The concepts embraced by this definition contained in the ISO personal auto policy are relatively complex. Most of these concepts appear in one form or another in the p...

7. Provisions applicable specifically to auto liability coverages
Car insurance limit of liability The ISO personal auto policy limit of liability condition is quite simple. It provides that the per accident limit of liability...

8. Rented and borrowed vehicles and car insurance exclusions
Unrated Vehicles Exclusion The definition of your covered vehicle encompasses not only the rated and described vehicles in the declarations, but also rented and...

9. Additional coverages included by car insurance policies
Most personal auto policies include some additional coverages. The policies do not actually use this term; however, the concept fits. This is also an area where there is ...