Unambiguous Homeowner’s Policy Excluded Coverage for Lawsuit Seeking

October 31, 2013 | Insurance Coverage

A federal district court in Michigan has ruled that a homeowner’s insurance policy unambiguously excluded coverage for a lawsuit stemming from a moped accident.

The Case

While vacationing in Ohio, a policyholder was driving a rented moped on a public street when she crashed into a golf cart, and three of the four occupants of the golf cart were injured. Her homeowner’s insurance carrier contended that there was no coverage for the accident under a motor vehicle exclusion in the policy. The insurer brought a declaratory judgment action, and moved for summary judgment.

The Court’s Decision

The court granted the insurer’s motion.

The court found the policy “unambiguous.” It determined that the moped was a “motorized land conveyance” that was subject to motor vehicle registration under Ohio law and, therefore, was excluded from coverage under the homeowner’s policy.

Accordingly, the court found that the policy did not provide coverage for liability arising out of the Ohio moped accident.  It concluded that the insurer had no duty to defend and granted the insurer’s motion for summary judgment.

The case is Liberty Mutual Fire Ins. Co. v. Holka, No. 12-13200 (E.D. Mich. Oct. 30, 2013).

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