Coverage for Damage to Building with Non-Owned Auto

 

August 11, 2017

 

Our insured was driving a non-owned auto. While driving the non-owned auto our insured struck the non-owned auto owner's building. Is there coverage under our liability coverage? We were thinking on liability exclusion 2 may be applied, since the owner of the car and the owner of the building are the same. A side note, brake failure on the non-owned auto is what caused the damage.

Connecticut Subscriber

 

Exclusion 2 would not apply because the car and building are owned by Owner, not by Insured. If Insured owned the building exclusion 2 would apply, but in the described scenario the exclusion does not apply.

Exclusion 3 wouldn't apply because the property damage happened to the building which was not rented to, used by, or in the care of the Insured (the damage to the non-owned auto might be excluded because it was being used by the insured).

But the section “coverage for damage to “your auto” says “we will pay for direct and accidental loss to “your covered auto” or any “non-owned auto”, and for a non-owned auto “we will provide the broadest coverage applicable to any “your covered auto” shown in the declarations (unless the car was available for the regular use of the insured).

We don't believe any other exclusion applies in this scenario.

So, since it was property damage that the insured caused and for which is legally responsible due to the auto accident, coverage should be provided. The building should be covered under liability and the car should be covered under property damage and no other exclusions would apply.