Archives for July 25, 2017

On July 20, 2017, the Los Angeles Daily Journal quoted Robert McKennon of McKennon Law Group PC in an article entitled “Insurance Claim Denial Because Airbnb Rental May Have Wider Implications,” by Andy Serbe.  The article discusses a recently filed complaint, and its broader applications regarding insurance coverage exclusions involving rentals and the impact on the potential for insureds to lose important coverage rights when they engage in once only or sporadic rentals of all or parts of their home.  In the article, Mr. McKennon explains that the insurer failed to define the terms in the exclusion, specifically the phrase “other structures reserved for rental.”  Accordingly, those terms were ambiguous as applied to the facts of the case (the complaint alleges that the insurer did not cover a claim for damages because the owner used part of the home for an Airbnb rental, which Travelers denied based on this exclusion).  Mr. McKennon further explains that, under California law, such ambiguity in exclusions are narrowly construed in favor of the insured.  Additionally, the insurer bears the burden of proof when it comes to proving that such an exclusion applies.