There is no liability insurance coverage for tenants of a property as they did not meet the definition of insured under the policy.

This action arose from the drowning death of a two-year-old child in a swimming pool at a home that was being rented by plaintiffs Shawn and Tanya Moon. Plaintiff Tanya Moon was babysitting the child at the time of accident. The property was owned by Shawn Moon’s father, Terry Moon. Terry Moon’s insurance policy with the defendant extended coverage to “any person while acting as [Terry Moon’s] real estate manager.” The decedent’s parents subsequently brought suit against Shawn and Tanya Moon and obtained judgment in excess of $10 million. After initially defending them under a reservation of rights, Cincinnati Insurance subsequently denied coverage and withdrew its defense of the Moons. Cincinnati Insurance reasoned that the policy did not cover Shawn and Tanya Moon through their relationship with Terry Moon. The Moons asserted that they were entitled to coverage under the terms of the policy, which extended coverage to real estate managers of the property. The court disagreed and held that there were no allegations in the complaint that the Moons were acting as real estate managers at the time of the accident. As tenants of the property, the Moons were not covered by Terry Moon’s homeowners policy.

_{Case Law Alerts, 2^nd Quarter, April 2015}

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