Expected or Intended Damage—Damage to Friend's Auto Hood

An insured we represent was at a party with several friends. At some point during the party two people decided to leave, and got into their car. Our insured, in a lighthearted attempt to persuade them to change their minds, laid across the hood of the car, denting it and causing $400 in damage to the vehicle.

The company agrees with us that the act was not done in anger; however, the company has denied coverage under the homeowners policy, citing the exclusion for "property damage which is expected or intended by the insured." They indicate the insured should have anticipated that damage would result.

We believe that the company has broadened the exclusion beyond its original scope. We think the exclusion applies in situations where the intention behind the act is to cause damage, or where the expectation is, based on the nature of the act, that injury or damage would be a likely result. In our insured's case there was no intent to harm, much less to cause $400 in damage.

North Dakota Subscriber

In the situation you describe, it appears that your insured did not intend to cause damage to his friend's car. Remember, the HO 00 03 10 00 excludes intentional damage, not intentional acts.

 Because the insurance policy is a contract of adhesion, it is up to the insurer to show that the exclusion applies; it is not the insured's obligation to show that it does not apply. The burden of proof is on the insurer to show that your insured intended to damage the car.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis