A tenant business rents a storefront, negligently starts a fire, and causes $250,000 of damage to the leased building. Its liability policy shows a $300,000 damage to premises rented to you limit. The insurer:
Explanation
Damage to premises rented to you is a carve-back restoring coverage for fire and certain other damage to a building the insured rents, which the care, custody, and control exclusion would otherwise strip out. The $250,000 loss sits under the $300,000 sublimit, so it is paid in full and nothing is billed to anyone. Denying the claim because the insured does not own the building ignores the carve-back, and the products aggregate applies to products and completed work.
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