Your Neighbor's Attitude is Not an Occurrence

The insured has spent months in an escalating dispute with his neighbor over the neighbor’s alleged violation of HOA rules and garish lawn decorations. Finally, the insured takes things too far by aiming his sprinkler at the neighbor’s newly painted shed, ruining an expensive paint job. The insured has been sued, and wants their insurance company to defend them in the lawsuit.

Notable Timestamps

[ 00:00:32 ] - This scenario involves an insured causing damage by ruining a neighbor's painted shed with a sprinkler, and expecting a defense.

[ 00:01:17 ] - The PLRB's Frontlines newsletter is a valuable resource for staying updated on recent case law regarding property, auto, and liability insurance.

[ 00:05:29 ] - An insurance company's duty to defend is crucial because fighting even a completely invalid lawsuit still requires spending money on legal fees.

[ 00:07:32 ] - Courts have ruled that erecting a malicious spite fence is a deliberate action, meaning it is not an accidental occurrence covered by insurance.

[ 00:13:01 ] - Bizarre accidents, like special low-efficiency windows melting a neighbor's vinyl siding by focusing sunlight, can potentially be covered occurrences.

[ 00:16:53 ] - Determining whether mistaken actions count as occurrences depends heavily on specific state jurisdictions.

[ 00:20:19 ] - If an individual intentionally punches someone, there is usually no occurrence, regardless of whether they intended to cause a severe injury like a broken jaw.

[ 00:24:03 ] - Liability insurance only covers fortuitous losses, so if a primary action isn't an occurrence, exclusions for intentional acts do not require analysis.

Your PLRB Resources

HO651 - Occurrence Definition
https://members.plrb.org/documents/ho651-occurrence-definition

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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Legal Information

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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