Insurance; Homeowner policies; intentional acts exclusion
When someone intentionally procures alcohol for an underage drinking party, the intentional acts exclusion in his homeowner’s policy bars coverage for injuries that result.
“First, Gundrum’s actions in setting up an isolated shed for a drinking party, procuring alcohol and expecting others to bring alcohol, inviting many underage guests to the party, and encouraging the underage guests to drink——especially an underage guest known to become belligerent when intoxicated——were intentional actions that violated the law. Gundrum’s many intentional wrongful acts were a substantial factor in causing Schinner’s bodily injury. Viewed from the standpoint of a reasonable insured, Gundrum’s intentional actions created a direct risk of harm resulting in bodily injury, notwithstanding his lack of intent that a specific injury occur. Thus, Schinner’s bodily injury was not caused by an ‘occurrence’ within the meaning of the policy, and West Bend is not obligated to provide insurance coverage for Gundrum.”
“Second, even assuming there was an occurrence under the West Bend homeowner’s policy, coverage is excluded because the injury arose out of the use of an isolated shed for an underage drinking party on uninsured premises. The fact that the Gundrums kept some personal property insured under the policy at the shed did not make the shed a premises used in connection with the insured’s residence, as those terms are defined in the policy. Thus, the business shed was not an insured location triggering coverage under the homeowner’s policy.”
2011AP564 Schinner v. Gundrum