Legal Definitions - owned-property exclusion

Definition: Owned-property exclusion is a provision in a comprehensive general liability insurance policy that allows only third parties who are injured on or by the insured's property to make liability claims against the insurer. This provision usually excludes coverage for property owned, rented, occupied, sold, given away, or abandoned by the insured, personal property in the care, custody, or control of the insured, and property located where the insured and its employees work.

Example: Let's say that John owns a small business and has a comprehensive general liability insurance policy. One day, a customer slips and falls on a wet floor in John's store and gets injured. The customer can make a liability claim against John's insurance policy because the injury happened on John's property. However, if John's own property, such as his car or his personal belongings, gets damaged, he cannot make a liability claim against his own insurance policy because of the owned-property exclusion.

Explanation: The owned-property exclusion limits the liability coverage of an insurance policy to third-party claims only. This means that the insured cannot make a liability claim against their own policy for damages to their own property. The purpose of this exclusion is to prevent the insured from intentionally causing damage to their own property and then making a claim against their own policy to receive compensation.