Is Personal Property Covered on HO-3 during an Insured's Move?

We have a client insured on a standard homeowners policy (HO 00 03 05 01). We recently received a theft and vandalism claim as a result of a loss sustained while he was moving his personal property to a new residence. The insured utilized a moving and storage company, and during the move several items were scratched and damaged. Apparently the moving van also had a leak in it as several other items were water damaged during the rainy weekend of the move. To make matters worse, several items were stolen.

Unfortunately, the insured declined the additional insurance covering damage and/or loss of property that was offered prior to the move. Can coverage be found elsewhere for this loss?

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Because vandalism is normally viewed as damage done with intent, we don't feel the items being scratched (unless done deliberately) falls into this category. Coverage for the stolen items, though, can be found under the theft peril in the insured's homeowners policy.

 

As for the water-damaged articles, coverage is found under the vehicles peril. Because the HO-3 puts no specific conditions or limitations on coverage for loss due to vehicles, any loss whose proximate cause is a vehicle may be covered under the policy's agreement to insure against “direct physical loss…caused by…vehicles.” Had it not been for the fact that the property was in the leaky moving van, no damage would have occurred.