Frerichs

This is an appeal from a judgment in an action for declaratory relief brought by plaintiff California Casualty Indemnity Exchange (California Casualty) concerning the interpretation of a policy of homeowners insurance.

The defendant was injured by Paul Hudson (Hudson), the adult son of the homeowners, the named insureds on a policy issued by California Casualty. At issue is whether Hudson is also an insured for purpose of the coverage clause of the policy. The judgment declares that Hudson, who was house-sitting during his parents’ vacation, is a “resident[] of [their] household” and hence within the definition of an insured under the policy.

The term “resident[] of [their] household” is used to define an additional insured under both liability coverage and exclusion clauses of the policy and there is nothing to show the meaning changes with the location. In general, coverage clauses are construed broadly and exclusion clauses narrowly against the insurer to protect the reasonable expectations of the named insured. These rules have no application here because they conflict, even on the view the named insureds expect coverage for their relative. In this circumstance we…