Question from an IIABNY member: Mr. and Mrs. Jones own a house, the use of which they have granted to Mr. and Mrs. Smith with a life tenancy provision in the agreement.
The residence premises is a one-acre parcel of land in the middle of a field. The whole field is owned by Mr. and Mrs. Jones. The driveway to the residence area is not part of the one acre. The tenants have the use of the driveway as stated in a written agreement.
Mr. and Mrs. Jones are additional insureds on the Smiths’ homeowners policy. The provisions of the homeowners policy state: “Insured Location” means a. The “residence premises”; c. Any premises used by you in connection with a premises described in a. and b. above.
The HO underwriter advises that the liability language in the policy provides coverage for the driveway.
The umbrella policy usually provides coverage over the underlying unless an exposure is excluded in the umbrella policy. Presuming that the use of the driveway is covered by the underlying policy, is the driveway exposure also covered by the umbrella?
Answer: Here’s how I see it. The umbrella policy in question defines “Insured Location” as:
...a one to four family dwelling, condominium, townhouse or a one to two family mobile home. Insured Location includes any primary, secondary and/or seasonal dwelling that is owned or occupied by you, as well as the other related, private structures and grounds at that location. (emphasis added)
Certainly you can make a good case that a driveway is a related grounds at the insured location because there is no reason to use the driveway if you are not staying at or visiting the dwelling. An exclusion in the policy excludes coverage for injury arising from property rented by an insured unless it meets the definition of insured location and is covered by underlying insurance. Therefore, if the insured’s primary liability coverage covers the driveway, the umbrella will, too.
I note that the definition of “insured location” in the ISO Homeowners policy includes any premises used by the named insured in connection with the residence premises and the part of other premises, other structures and grounds used by the named insured as a residence and shown in the declarations or acquired during the policy term. Again, the driveway appears to meet this definition, so the underlying insurance should cover it.
Bottom line, it appears to me that this umbrella covers injury arising out of use of the driveway. Your mileage may vary, depending on individual claim situations.
The driveway may be covered but it is a good idea to keep driveways in good condition with no trip hazards
Posted by: PEYTON STALLINGS | November 20, 2011 at 01:28 PM