In a named peril HO-4 policy that includes the peril "Explosion", under Coverage C, would this peril include coverage for damage to the policyholders personal property caused by a gunshot? And also, would Section II (Liability) of the policy respond to cover or exclude damage to the leased dwelling unit itself?
New Hampshire Subscriber
We're looking at the ISO HO 00 04 03 22; your form could be different. Explosion is listed as a peril with no exceptions/exclusions/modification. As explosion isn't defined in the policy, courts would turn to a standard desk reference for the definition. Merriam-Webster Online defines explosion as:
1: the act or an instance of exploding; or
2: a large-scale, rapid, or spectacular expansion or bursting out or forth
We see a gunshot as fitting this definition. The mechanics of a gunshot involve a projectile, the bullet, being propelled by pressure or explosive force. This would make the gunshot an explosion.
A Pennsylvania court agreed and said that a shotgun blast constituted an explosion in Weisman v. The Green Tree Ins. Co., 670 A.2d 160 (Pa. Super 1996). A tenant of the Weismans committed suicide with a shotgun on the premises. They incurred emergency cleanup costs, lost rent, and repair costs. Their insurer, Green Tree, denied coverage. The trial court found that the loss was covered as the explosion was a covered peril, and the court deemed the shotgun blast to be an explosion.
The Superior Court of Pennsylvania construed the term according to a common definition. Webster's defined "explosion" as "to burst forth with sudden violence or noise from internal energy." The court concluded that, although a shotgun blast is not usually called an explosion, it still fit within a broad reading of the definition. The term, therefore, was subject to more than one interpretation of its meaning by reasonably intelligent persons and found ambiguous. Thus, it was decided in favor of the insureds.
Damage to an insured's personal property could be considered due to an explosion, for example, if an insured accidentally shot into the sofa.
If the bullet passed through the sofa and into the tenant's wall, damaging it, that would fall under Section II. Personal liability is for damages the insured is legally liable for, something we cannot address. One exclusion that could apply here is expected or intended injury - was the gun fired deliberately? Did the insured intend to damage the wall? That would be excluded. Even if the insured intended to destroy something else in the dwelling, if other damage resulted, that would be excluded.
Another exclusion that applies is for damage to property rented to, occupied or used by or in the care of an insured. An exception to this exclusion exists for damage by fire, smoke or explosion, which could be applied here since we see a gunshot as an explosion.
Additionally, under Additional Coverages, Damage to Property of Others provides up to $5,000 per occurrence for property damage of others caused by an insured as long as the damage wasn't intentional and no other exclusions apply, and none of the exclusions under Damage to Property of Others fit this situation. The damage should be covered.