What is Owned-Property Exclusion? A Comprehensive Guide

Definition & Meaning

The owned-property exclusion is a clause found in comprehensive general liability insurance policies. This provision limits liability claims to third parties who suffer injuries on or due to the insured's property. Essentially, it excludes coverage for any property that the insured owns, rents, occupies, sells, gives away, or abandons. Additionally, it does not cover personal property that is in the care, custody, or control of the insured, nor does it apply to property located at the insured's workplace.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: If a visitor is injured while using a trampoline that the insured owns, they may file a claim. However, if the insured is injured while using their own trampoline, that claim would be excluded under the owned-property exclusion.

Example 2: A business owner who rents out a venue may be liable for injuries to third parties, but not for injuries to themselves or their employees while on the property they own or lease. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Notes
California Broad interpretation of liability exclusions.
Texas Specific exclusions for certain types of property.
New York Emphasizes the importance of liability insurance in business operations.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Exclusion Clause A provision that removes certain types of coverage. Owned-property exclusion specifically pertains to property owned by the insured.
Liability Coverage Insurance that protects against claims resulting from injuries and damage. Liability coverage may include owned property under certain conditions, unlike the owned-property exclusion.

What to do if this term applies to you

If you find that the owned-property exclusion affects your insurance coverage, consider the following steps:

  • Review your insurance policy to understand the exclusions.
  • Consult with an insurance agent to clarify coverage options.
  • Explore legal form templates from US Legal Forms to create necessary documents related to liability claims.
  • If your situation is complex, seek professional legal assistance.

Quick facts

  • Typical coverage: Liability for third-party injuries.
  • Common exclusions: Owned, rented, or abandoned property.
  • Jurisdiction: Varies by state.
  • Consultation: Recommended for complex situations.

Key takeaways

Frequently asked questions

It is a clause in liability insurance policies that excludes coverage for injuries related to property owned by the insured.