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Our insured leases a unit in a large building/warehouse. The insured caused damage to carpeting in the conference room of the building.

The conference room is not part of our leased unit; it is a common area for all unit lessees to use. The insured does pay $2.62 per month on top of the rent toward the common areas. Would exclusion (k), damage to property you own, rent, or occupy, apply in this situation?

Initially we thought it would since the insured leases the space, but the actual loss location was in a common area and not in the insured's unit, so we had some doubts. Would this be considered property the insured leases, rents, or occupies since the insured pays for it as part of the rent, and therefore is the exclusion applicable?

Ohio Subscriber

Since the insured does pay rent for the use of the common area and does use it, we are of the opinion that the exclusion would apply. It is true that the insured does not occupy the common area on a consistent basis, but the facts as you describe them would mean that the exclusion is applicable.

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