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Dissecting the insurance definition of property damage

When a term is not defined in a policy, courts generally go to a standard desk reference since that is what the average insured would do.

By FC&S Editors | Updated on January 24, 2018
Depending on the policy language, water damage caused by the rain may not be covered. (Photo: iStock) Depending on the policy language, water damage caused by the rain may not be covered. (Photo: iStock)

Analysis brought to you by the experts at FC&S Online, the recognized authority on insurance coverage interpretation and analysis for the P&C industry. To find out more — or to have YOUR coverage question answered — visit the National Underwriter website, or contact the editors via Twitter: @FCSbulletins.

Question: A policyholder has an ISO HO-3. The carrier has utilized the defined phrase of “property damage” in determining coverage for a homeowners claim made under Section I of the policy.  I have reviewed Section I of the policy and cannot locate the defined phrase of “property damage”. The phrase “property damage” only exists under Section II.  Section I only contains the word “damage” not “property damage”. Is it accurate or appropriate for the carrier to cite and rely on the definition of the phrase “property damage” regarding a claim made against Section I when the phrase is only located in Section II?   

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