Damage to the Property of Others

1. Damage to the Property of Others Section II – Additional Coverages

2. Damage to the Property of Others Additional Coverages under Section II – Liability: Protections/coverages that would not neatly fall under Coverage E or F or that need to be clearly defined in relation to the Property section. Four additional coverages apply… lets go over them now

3. 1. Damage to the Property of Others • Pays damage to others’ property if insured causes it • Subjected to the following exclusions: • Pays nothing covered by Section 1 • No coverage for intentional damage by adults or teenagers (13 or over) • No coverage for insured’s property • No coverage for property of residents or tenants • Insurer will pay up to $1,000 per occurrence for Damage to someone’s Property caused by its insured.

4. 2. First Aid • Covers all incurred costs necessary for the first aid of another • Does not pay for first aid for the insured

5. Claims Expenses Covers financial loss due to the demands of the claims process, including: • The cost to investigate a claim • Expenses incurred by the insured (including lost wages up to $250/day) • Interest on judgments that accrue after the judgment • Premiums for bonds required in a suit defended by the insurer

6. Loss Assessment • Pays up to $1000 for assessments of property association members • Kicks in when: • Injury or damage is not excluded under section two • The liability is for an act committed by an elected director or officer, not a paid employee of the association • No coverage for assessments charged by a governmental body

7. Liability Coverage Exclusions – Coverage E • REMEMBER: Coverage E covers Personal Liability EXCLUDES: • Bodily injury and property damage to the insured (1st party) • Bodily injury to the persons covered by Workers Compensation insurance • Damage to property rented by insured, occupied or used by insured, or held in insured’s custody and care

8. Liability Coverage Exclusions – Coverage E • Liability for contracts • However this is covered when relating to ownership, maintenance, or use of insured location, or if insured had assumed others’ liability before an occurrence • Unless damage is caused by fire, smoke, or explosion, Coverage E does not cover property rented to, occupied by, or in the care, custody, and control of the insured. • Contractual Liability is excluded. It is covered, however, if the liability on the contract relates to ownership, maintenance, or use of an insured location, or if the insured assumed the liability of others prior to the occurrence.

9. Coverage F – Medical Payments Exclusions • The insured person • Anyone who lives on residence premises regularly • Anyone eligible for Worker’s Comp or Disability for the occurrence • Harm to a resident employee who is not in the course of employment, or is not at premises at time of occurrence • Harm from nuclear reaction

10. Exclusions to E & F • Intentional or malicious harm to third party by insured • Harm from war • Disease transmitted from insured to 3rd party • Sexual molestation or abuse by insured • Drug use, sale, manufacture, possession

11. Vehicle Exclusions • Harm or damage caused by insured’s automobile use • Exceptions: vehicle for property maintenance, handicapped persons, or those in storage. Recreational vehicles are covered under certain conditions • Aircraft • Watercraft • If owned by insured, motor is 25hp or greater • If rented by insured, motor is 50hp or greater • Rented or owned, sailboats 26ft or greater

12. Business Exclusions • Third party losses due to insured’s business • Third party losses from insured’s failure to render business services • Failure to render professional services • Example: • A glass repair technician is sued by client for a job not well done. The insured’s homeowner policy excludes coverage of a suit of this type.

13. Section II Conditions • Liability for contracts • However this is covered when relating to ownership, Liability for contracts • However this is covered when relating to ownership, maintenance, or use of insured location, or if insured had assumed others’ liability before an occurrence • maintenance, or use of insured location, or if insured had assumed others’ liability before an occurrence

14. Sections I or II • Cancellation and Non renewal Assignment Concealment/misrepresentation Subrogation Liberalization Statement of waiver or change

15. Liberalization, Voluntary Coverage, and Lawsuits Against the Insurer • Liberalization Applies to changes made up to 60 days before the policy inception Payment of claim – Coverage F - Medical Payments to Other * voluntary coverage if a claim is paid, it is not admission of insurer’s liability Lawsuit against insurer: • All section II terms must be met • No one can join insurer in lawsuit against insured • No suit pertaining to Coverage E can be brought until obligation of insured is agreed to

16. Homeowners Endorsements • 8 typical endorsements • Sinkhole collapse • Sewer backup • Earthquake • Hurricane • Ordinance or law • Personal property replacement cost • Inflation guard • Scheduled personal property

17. Changing coverage perils • Endorsements can add coverage for • Sinkhole collapse • Sewer backup – up to $5000 (deductible applies) • Earthquake • Ordinance or law (up to $5000) • Hurricane damage can be removed (if a state program already provides this coverage).

18. Changing limits and valuation • For increased premium, endorsements can add: • Replacement cost valuation rather than ACV • Inflation guard to automatically increase limit • Scheduled personal property such as jewelry, furs, collectibles

19. Review • Coverage E – Personal liability – Coverage includes • medical bills • Lost wages • Pain & suffering • Inconvenience • Property damage • COVERAGE F – Medical Payment • Coverage for medical expenses of third parties that are injured on your property