The article of the month pertains to named nonowner coverage. To be eligible for a personal auto policy, the applicant must either own or lease a private passenger auto. Anyone that does not own, but might occasionally borrow or use, an auto still needs personal auto coverage for the maintenance or use of such nonowned auto. This coverage is available by attaching the named nonowner coverage endorsement to a personal auto policy.

The article of the month discusses the general features of the named nonowner coverage endorsement along with a brief description of the rating procedure.

The court cases for this month's issue deal with water damage claims, attorney fees, and estoppel.

The District Court of Appeal of Florida, Fifth District, had to decide whether the water damage exclusion excludes the losses from coverage or whether the damage was covered as an ensuing loss. In a similar case, the Court of Appeals of New York handled a water damage claim that arose from a burst water main, a claim that the insured said was covered as an ensuing loss arising from an explosion. In a case from Florida, the issue was whether policy language that required the insurer to pay “all court costs charged to an insured in a covered lawsuit” included attorney fees assessed against the insured. The last case comes from the Court of Appeals of Oregon and deals with the doctrine of estoppel and whether that doctrine could overrule an unambiguous exclusion.

Questions and Answers

Stolen air conditioning units waiting to be installed would not be considered equipment used for making alterations to the property. See Air Conditioning Units Not Equipment Used for Making Alterations.

Ring collection used in a chiropractor's practice could be considered business personal property. See Championship Rings Are Business Personal Property.

Are fees incurred by hiring a CPA to provide financial information considered appraisal expenses? See CPA Fees as Appraisal Expenses.

Golfer's Equipment Form

An inland marine form specific to golfers equipment is available through ISO. Form PM 00 16 provides coverage for equipment such as clubs, clothing, and accessories on a scheduled basis. See Golfer's Equipment Form.

Fine Arts Form

An inland marine form specific to personal fine arts is available through ISO. Form PM 00 17 provides coverage for a variety of fine arts including rugs, statues, porcelains, and other works of art on a scheduled basis. See Fine Arts Form.