Insured Rents Hall for an Event

May 3, 2013

My question pertains to the HO-3 ISO Homeowners form in regards to the liability portion of the policy.

If a named insured would rent out a building (like Knights of Columbus hall, pavilion, church, or reception hall), would the liability coverage extend from the homeowner policy? Especially in regard to liquor being served, would there be coverage in regard to the host liquor liability?

The way I read the policy, there would be no property damage coverage to the rented location unless there is damage caused by fire, smoke, or explosion.

Illinois Subscriber

This involves the definition of “insured location,” which includes “any premises used by you in connection with a premises described in a. and b.”—a and b are the residence premises, which is the property where the insured resides, or other premises used as a residence and shown in the declarations or newly acquired. While the policy states that injury or damage arising out of a premises rented to an insured is not covered, this applies only if the location is not an insured location. A hall, restaurant, or other facility rented for an event can be considered to be a premises used in connection with the residence premises. There is no exclusion for host liquor liability on the ISO HO 00 03 05 11.

You are correct in that property damage is excluded other than for loss caused by fire, smoke, or explosion.

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