Rental Exclusion Bars Coverage for Owner Sued by Tenant

WEST PALM BEACH, Fla. - A Florida appellate court ruled March 29 that an insurer has no duty to defend homeowners who leased the insured property on more than the 'occasional' basis allowed under the policy. Falzone v. Florida Residential Property and Casualty Joint Underwriting Association, Nos. 4D04-4936 and 4D05-138 (Fla. Ct. App., 4th Dist.).

Donald and Patricia Laine sought coverage under their homeowners policy after they were sued for breach-of-lease by tenants James and Barbara Falzone. The Falzones complained that mold had made the home they leased from the Laines uninhabitable.

The Laines' insurer, Florida Residential Property and Casualty …