On an HO3 policy, the insured is living in the house but is renting out a room for office space. An exclusion says that injury or property damage is not covered in connection with a business conducted from an insured location whether or not the business is owned or operated by the insured.

There is an exception to the exclusion though, that seems to grant coverage if part of the residence is rented and used as an office, school, studio or private garage.

Is there coverage for the insured if something happens in the rented office space in his home?

Massachusetts Subscriber

You are correct in your reading of the exception to the exclusion; coverage is provided to the insured when space within the residence premises is rented for office space to someone else. For example the insured lives in a 3000 square foot home, and rents a 500 square foot room in the basement to Ted who houses the office of Ted's Traveling Trapeze Act there. As long as the entire residence is not rented for business purposes, there is liability and medical payments coverage for the insured.