The owned-property exclusion in insurance policies means that only third parties who are injured on or by the insured’s property can make liability claims against the insurer. This provision typically excludes coverage for property owned, rented, occupied, sold, given away, or abandoned by the insured, as well as personal property in the care, custody, or control of the insured, and property located where the insured and its employees work. In other words, if you own something and it gets damaged or causes damage, your insurance policy may not cover it.
The owned-property exclusion is a provision found in comprehensive general liability insurance policies. It restricts liability claims to only third parties who are injured on or by the insured’s property. This provision specifically excludes coverage for property owned, rented, occupied, sold, given away, or abandoned by the insured, as well as personal property under the insured’s care, custody, or control. Additionally, it excludes property located where the insured and its employees work.
For example, let’s consider John who owns a small business and has a comprehensive general liability insurance policy. If a customer slips and falls on a wet floor in John’s store, they can make a liability claim against John’s insurance policy because the injury occurred on his property. However, if John’s own property, such as his car or personal belongings, gets damaged, he cannot make a liability claim against his own insurance policy due to the owned-property exclusion.
In essence, the owned-property exclusion limits the liability coverage of an insurance policy to only cover claims made by third parties. This means that the insured cannot make a liability claim against their own policy for damages to their own property. The purpose of this exclusion is to prevent the insured from intentionally causing damage to their own property and then making a claim against their own policy to receive compensation.
The owned-property exclusion is a legal provision that allows property owners to exclude their own property from liability coverage under their insurance policy.
Property owners may choose to exclude their owned property from liability coverage to avoid potential lawsuits or claims arising from accidents or injuries that occur on their property.
No, you cannot exclude all of your owned property from liability coverage. Certain types of property, such as rental properties or commercial properties, may be required to have liability coverage by law or by the terms of a mortgage or lease agreement.
Yes, there are limitations to the owned-property exclusion. It typically only applies to personal liability coverage and may not extend to other types of coverage, such as property damage or medical payments coverage.
Excluding your owned property from liability coverage may affect your ability to obtain a mortgage or loan. Lenders often require liability coverage as a condition for granting a mortgage or loan, so excluding it may result in a denial or higher interest rates.
Yes, you can usually change your mind and include your owned property back into liability coverage. However, you may need to notify your insurance provider and make the necessary adjustments to your policy.
There may be legal consequences for excluding owned property from liability coverage. If someone is injured on your property and you have excluded it from liability coverage, you may be personally responsible for any resulting damages or medical expenses.
Yes, you can often exclude liability coverage for specific areas or features of your owned property. For example, if you have a swimming pool, you may choose to exclude liability coverage for accidents or injuries related to the pool.
No, the owned-property exclusion may vary between insurance policies and providers. It is important to review your specific policy and consult with your insurance provider to understand the terms and conditions of the exclusion.
It is advisable to consult with a lawyer before excluding your owned property from liability coverage. A lawyer can provide guidance on the potential legal implications and help you make an informed decision based on your specific circumstances.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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