The named insured has retired and moved to his condo in Florida. His adult daughter accepted a new job in the city her father is leaving, so she and her two children have moved into the insured dwelling. A fire occurred destroying the entire home and all of its contents.
Notable Timestamps
[ 00:37 ] - John details the above scenario.
[ 02:30 ] - Who is "You"? "You" is the named insured or insureds indicated in the Declarations, and the spouse of that person if the spouse is a household resident.
[ 03:45 ] - How does the insurance policy define "y'all"? Or "youse"?
[ 04:11 ] - "Residence Premises" is the one-, two-, or three-family dwelling listed in the Declarations in which "you" reside.
[ 05:26 ] - The majority of courts would hold that the named insured could not recover for this loss because he relinquished residency: left for six months, initially planned to sell, got a new driver's license, never planned to move back, changed voter registration, forwarded mail, etc.
[ 06:10 ] - Snowbirds who move back and forth have an intention to return, so they would likely be covered in a similar situation.
[ 07:05 ] - A minority of courts allow coverage as long as the insured resided in the premises at the inception of the policy period.
[ 07:40 ] - The insured's contents would be covered because coverage for contents are not tied to residency.
[ 08:55 ] - The daughter is not a named insured, and is likely not an "insured" (members of your household who are also your relatives) because she is not a member of the insured's household.
[ 10:10 ] - To determine who is a member of the household, courts generally look to (1) whether they live under the same roof, (2) whether they live in a close intimate relation, and (3) whether the length of stay is substantial. (ISO has added language to include college students, who intend to return.)
[ 11:55 ] - The children of divorced parents may be considered members of multiple households.
[ 12:45 ] - What if the fire had been set intentionally by the grandchild? Since the child is not an insured, it wouldn't fall under the intentional loss exclusion.
[ 14:26 ] - If the insurance company knew or had cause to know that the insured had moved and kept accepting premiums, they could be estopped from making the argument against coverage.
[ 16:33 ] - John provides a recap of the scenario and the points above.
Your PLRB Resources
To learn more about this issue specifically, look up our 50 state survey:
Must Insured Reside At Premises? – An Introduction
https://www.plrb.org/documents/introduction-must-insured-reside-at-premises/
Also see the PLRB’s annotation on the definition of “insureds” in the policy at PLRB, Homeowners Annot., Key HO5
https://www.plrb.org/documents/insured-ho5/?search=HO5
...and the definition of “residence premises” at PLRB, Homeowners Annot., Key HO10.
https://www.plrb.org/documents/residence-premises-ho10/
Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/ask-plrb/) at no additional charge to you or your company.
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The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.
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