The exclusion goes on to state that: Paragraphs (1) and (4) of this exclusion do not apply to property damage (other than damage by fire) to premises, including the contents of such premises, rented to you (the named insured) for a period of 7 or fewer consecutive days. A separate Limit of Insurance applies to Damage To Premises Rented To You as described in Paragraph D. Liability And Medical Expenses Limit Of Insurance in Section II – Liability.

The BOP has a $200,000 limit of insurance for damage to premises rented to the named insured. If the insured has coverage for this claim, is this limit for fire damage only? We are not sure how this limit applies.

Colorado Subscriber

There is no coverage for the claim for property damage in this instance. Exclusion k1 applies since the insured rented the place for over 15 years and should have had property coverage for this time.

The part about liability limits of insurance applies only in connection with damage caused by the insured while renting someplace for seven or fewer days. The wording is confusing but you have to read that paragraph in connection with the damage to property exclusion. The exclusion applies if the insured has rented a place for over 7 consecutive days. What the limits of insurance clause is saying is that if the insured has rented a place for 7 or fewer days and causes some PD, the most the insurer will pay is the amount noted in the damage to premises rented to you shown in the declarations. If the insured has rented the place for over 7 days, the exclusion applies and the limit of insurance clause is not applicable.

As additional information, since the insured has been in the building for such a long time, the only damage to premises coverage he has is the fire coverage. The coverage for other than fire damage is limited to a period of seven or fewer consecutive days The exception to exclusion k1 in your policy allows this coverage and states that the limit of insurance that is applicable to a loss is the damage to premises rented to the named insured limit as described in section D. So, if the insured was in the building for seven or fewer days, the stated limit of insurance amount is available for a loss caused by fire or any other type of loss.

However, if the insured is in the building for a long tine such as 15 years, exclusion k1 will prevent coverage for a loss unless that loss is by fire. If that occurs, the limit of insurance available to the insured is the damage to premises rented to the named insured limit shown in the declarations.