We insure a dwelling under an HO 00 03 10 00 ISO form with a Limited Fungi, Wet or Dry Rot & “Bacteria” Coverage endorsement attached. The insured had a tenant who owned a dog and lived in part of the owner-occupied dwelling. The facts of the case suggest that the tenant owned this dog, not the “insured(s)” and that the dog caused damage to various carpeted and hardwood floors within the rented portion(s) of the dwelling. When the tenant moved out, the insured(s) discovered the damage done by the tenant's animal and reported a claim for cleanup and repair /replacement of damaged flooring surfaces.

My coverage question is two-fold. First, as the “animal” was not “owned” or “kept” by the “insured”, it appears that the open peril exclusion under A-Dwelling would not apply, thereby covering the damage caused by the tenant's animal. Secondly, as the damage done by the animal relates to bodily fluids, the “bacteria” enhancement coverage has been brought into question. The insureds contend that they must sanitize (clean up – remediate) the animal's mishaps before they can rent the property to another occupant. As the proximate cause of loss is likely covered (ambiguous at best with respect to an animal not “owned” or “kept” by an “insured”) wouldn't the Limited Fungi, Wet or Dry Rot & “Bacteria” coverage also be covered as an ensuing loss from an otherwise covered cause of loss?