HOMESITE INS. CO. V. SUSAN HINDMAN, ET AL
A-5103-08T1 4-23-10
In our interpretation of business and rental exclusions in
a homeowner's policy we concluded that neither barred coverage.
The business exclusion could not apply to rental activity, the
more specific provisions of which should control. Although the
rental exclusion prohibited rental or holding out for rental any
part of the premises, the exclusion contained an exception for
boarders, unless rented or "intended" to be rented to more than
two boarders. We held that, notwithstanding the insured's
rental to more than two boarders for several years prior to the
policy period during which the accident occurred, she had only
two boarders during the policy period, her present intent at the
time of the accident is dispositive, and in the absence of
objective evidence that she intended at that time to rent to
more than two boarders, intent is not established.
