469_C348

WAS GOLF CART OPERATING ON "INSURED PREMISES?"

Homeowners

Motor vehicle exclusion

Insured premises

 

 

Alexander, the minor son of appellants Nicholas and Charlene Elliott, was operating a golf cart on a private road in the Plantation at Sewall's Point community in Stuart, Florida. Katie, the minor daughter of Linda Frontiero, was a passenger on the golf cart, and at some point during the ride, Katie fell out of the cart and sustained injuries.

 

The Frontieros filed a negligence complaint against the Elliotts. The Elliotts' homeowners insurer, State Farm Florida Insurance Company, then filed an action for declaratory judgment seeking a determination of coverage under the Elliotts' policy.

 

The Elliotts' policy excluded from coverage any "bodily injury or property damage arising out of the ownership, maintenance, use, loading or unloading" of any "motor vehicle owned or operated by or rented or loaned to any insured." The policy defined a golf cart as a "recreational vehicle," but a recreational vehicle was considered a motor vehicle "while off an insured location." The policy defined the "insured location" in pertinent part as follows: "a. the residence premises; b. the part of any other premises, other structures and grounds used by you as a residence. This includes premises, structures and grounds you acquire while this policy is in effect for your use as a residence; c. any premises used by you in connection with the premises included in [a.] or [b.].”

 

State Farm Florida disagreed that the allegations in the Frontieros' negligence action would invoke coverage under the Elliotts' policy. The insurer claimed that the accident took place outside of the insured premises and was not covered by the policy.

 

The Frontieros also filed a counterpetition, seeking a declaration that State Farm Florida had an obligation to defend and indemnify the Elliotts in the negligence allegations. The trial court agreed with State Farm Florida and granted final judgment declaring that the policy did not cover the injuries Katie sustained in the accident. The Elliotts and the Frontieros appealed.

 

On appeal, the Florida Appellate Court, Fourth District, noted that the golf cart accident took place approximately one-and-a-half to three blocks away from the insured premises on a private road within the gated community. According to the court: "To accept the legal principle that the private road located blocks away from the 'insured location' was used 'in connection' with the insured location, as a roadway in and out of the community, could effectively make all roads within all gated communities covered locations 'used in connection' with the insured location. This interpretation is untenable."

 

The court added: "[T]he definition of 'insured premises' or 'insured location' would be rendered meaningless without a 'discernible geographic limitation to coverage. ... [T]he trial court correctly determined that the accident was not covered under the homeowners policy, inasmuch as it did not occur on the insured premises."

 

The court affirmed the trial court's judgment in favor of State Farm Florida.

 

Elliott vs. State Farm Florida Insurance Company-District Court of Appeal of Florida, Fourth District-June 1, 2011-61 So.3d 502, 36 Fla. L. Weekly D1153