There are three sets of section II exclusions.  The first set of twelve exclusions applies to both coverage E, personal liability, and coverage F, medical payments to others.  Three of these exclusions—for motor vehicles, watercraft, and aircraft—are discussed separately as well as here. See Motor Vehicle, Watercraft, and Aircraft Liability Exclusions. The second set of six exclusions applies to coverage E only.  The third set of four exclusions applies to coverage F only. (A separate set of exclusions for additional coverage 3, damage to property of others, is examined in the discussion of that coverage. See Personal Liability—Additional Coverages.

The following discussion is based on the 2011 forms edition, with applicable references to the 2000 edition.

All cases cited in this article have been chosen as examples of the differing coverage interpretations that are possible with the HO 00 03. Many of these cases have been cited in later decisions, and, although there have been dissenting opinions, none have been overturned as of this printing. However, the language of the 2011 forms has not yet wound its way through the courts, so different decisions may occur in the future.

Topics covered:

Introduction

The motor vehicle liability exclusion

The watercraft liability exclusion

The aircraft and hovercraft liability exclusions

Expected or intended injury

The business exclusions

Insured locations

The war exclusion

Communicable disease

Sexual or physical abuse

The controlled substance exclusion

“Residence employee” exceptions

Coverage E—personal liability—exclusions

Coverage F—medical payments to others—exclusions

Introduction

 The liability exclusions in the 2011 homeowners forms are in the same format as the 2000 form. As a reminder, the terms in quotation marks are now found in the definitions section. Therefore, when reviewing the exclusions it is important to keep the definitions in mind.

 1. “Aircraft liability”, “Hovercraft liability”, “Motor vehicle liability” and “Watercraft liability”, subject to the provisions in b. below, mean the following:

a. Liability for “bodily injury” or “property damage” arising out of the:

(1) Ownership of such vehicle or craft by an “insured”;

(2) Maintenance, occupancy, operation, use, loading or unloading of such vehicle or craft by any person;

(3) Entrustment of such vehicle or craft by an “insured” to any person;

(4) Failure to supervise or negligent supervision of any person involving such vehicle or craft by an “insured”; and

(5) Vicarious liability, whether or not imposed by law, for the actions of a child or minor involving such vehicle or craft.

b. For the purpose of this definition:

(1) Aircraft means any contrivance used or designed for flight except model or hobby aircraft not used or designed to carry people or cargo;

(2) Hovercraft means a self-propelled motorized ground effect vehicle and includes, but is not limited to, flarecraft and air cushion vehicles; and

(3) Watercraft means a craft principally designed to be propelled on or in water by wind, engine power or electric motor.

 With this format, an exclusion can simply refer to “aircraft liability”; negligent supervision, entrustment, maintenance, occupancy, operation, use, loading or unloading are all thereby included within the scope of that term.

Motor Vehicle Liability Exclusion