Our insured owns a rental dwelling. The liability coverage for that dwelling is extended from his homeowners policy.

Recently a bad circuit breaker in the rental dwelling shorted out and damaged the tenant's TV and VCR. Our insured paid his tenant for the damage and submitted the bill to us for reimbursement, which we in turn submitted to the insurer.

The insurance company has denied payment on the basis that the insured was not liable for the damage. Shouldn't the tenant expect that he can safely use his personal property inside the rented dwelling, without the fear of it being damaged?

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