What is the definition of insured? The owners do not live there, but the son and family live there. Is damage to the son's personal property covered under the parent's HO policy? The parents live at a different address with their own HO policy.
New York Subscriber
We're looking at the ISO HO 00 03 03 22; your policy may be different. Most policies provide a definition of insured. The ISO form states: "you" and "your" refer to the "named insured" shown in the Declarations and the spouse if a resident of the same household. "
And further into the policy: " Insured" means: a. You and residents of your household who are: (1) Your relatives; or (2) Other persons under the age of 21 and in your care or the care of a resident of your household who is your relative; b. A student enrolled in school full-time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of: (1) 24 and your relative; or (2) 21 and in your care or the care of a resident of your household who is your relative; or c. Under Section II: (1) With respect to animals or watercraft to which this Policy applies, any person or organization legally responsible for these animals or watercraft which are owned by you or any person described in 9.a. or b. "Insured" does not mean a person or organization using or having custody of these animals or watercraft in the course of any "business" or without consent of the owner; or (2) With respect to a "motor vehicle" to which this Policy applies: (a) Persons while engaged in your employ or that of any person described in 9.a. or b.; or (b) Other persons using the vehicle on an "insured location" with your consent. Under both Sections I and II, when the word an immediately precedes the word "insured", the words an "insured" together mean one or more "insureds".
Other relevant definitions include "Insured location" which states that the "residence premises" is an "insured location", and "residence premises" is defined as: a. The one-family dwelling where you reside;b. The two-, three- or four-family dwelling where you reside in at least one of the family units; or c. That part of any other building where you reside; and which is shown as the "residence premises" in the Declarations.
So the property in question, where the owners do not reside, is not their "residence premises". Therefore, since they do not live there, the son and his family are not resident relatives. Being related to the owners does not make one an insured unless you are living in the same property. Therefore, the son's property would not be covered in the event of a loss. In order for the son and his family to have any coverage for personal property or liability they need a tenants policy, unless the property is deeded to them and they become the owners.
But with the property titled to the parents, and the parents living elsewhere, there is no coverage for the son and his family. Further, the owners could run into issues if there is a loss since the property is not their "residence premises", and therefore the property is not an "insured location", as under Section I Property Coverages Coverage A, it clearly states that: We cover: a. The dwelling on the "residence premises" shown in the Declarations including structures attached to the dwelling. The properties should be reviewed and insured correctly. Underwriting may want the property the son is living in covered under a dwelling fire policy for the parents, and the son needs a tenants policy for his personal exposures. There are significant gaps in coverage here that need to be addressed as soon as possible.