Theft of Tenant's Property

February 10, 2014

We have a homeowner's HO-03 policy. We have a four car garage on our property and rent part of it out to our neighbor for a fee of $250 per month. The neighbor renting the space is now claiming that a generator they were storing in the space was stolen. No proof the generator was ever in the unit. We are thinking there would not be coverage for this, under Section I Property Coverages- Property Not Covered #5: Property of roomers, boarders and other tenants, except property of roomers and boarders related to an “insured”. Is this correct?

Massachusetts Subscriber

You are correct, the loss is excluded not only under property of tenants, but also under theft; property stolen from that part of a residence premises rented to someone other than an other insured is excluded.