Person Living in Unit over Barn

October 26, 2015

I have a standard HO-3 on this risk; the insured is in horse country and has a barn with a living unit above the barn. A longtime friend of the family stays in the living unit, pays his own utilities, and helps take care of the property. He pays no rent, and there is no rental agreement in place. Under coverage B, the policy says it does not cover other structures rented or held for rental. Does the guy living there make the barn considered “rented or held for rental”?

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