A policyholder has an ISO HO-3. The carrier has utilized the defined phrase of “property damage” in determining coverage for a homeowners claim made under Section I of the policy. I have reviewed Section I of the policy and cannot locate the defined phrase of “property damage”. The phrase “property damage” only exists under Section II. Section I only contains the word “damage” not “property damage”. Is it accurate or appropriate for the carrier to cite and rely on the definition of the phrase “property damage” regarding a claim made against Section I when the phrase is only located in Section II?

New Jersey Subscriber

The term “property damage” in the ISO HO 00 03 05 11 is defined as follows on page 2 of the policy:

9. “Property damage” means physical injury to, destruction of, or loss of use of tangible property.

Once defined, you are correct in that the term is not used again until Section II. Therefore, the carrier should not be applying that definition to any damage that occurs to property under Section I. When a term is not defined in a policy, courts generally go to a standard desk reference since that is what the average insured would do. Merriam Webster Online defines damage as: loss or harm resulting from injury to person, property, or reputation: flood damage.