Opinion ID: 2691247
Heading Depth: 3
Heading Rank: 1

Heading: Expressed Intent of the Parties

Text: {¶ 54} Michael and Marilyn Hunter purchased two policies. Westfield Insurance Company insured the Hunters’ residence along with a rental property. Grinnell Mutual Reinsurance Company insured the Hunters’ Indiana farm. Westfield’s policy contained an exclusion from liability coverage for bodily injuries “[a]rising out of a premises    [o]wned by an insured    that is not an insured location.” Grinnell’s policy contained a similar exclusion. The very existence of the two policies, each obtained by the Hunters to provide coverage for their respective premises, makes clear that the parties intended to exclude coverage for injuries occurring at premises they own that are not insured locations under the respective policies. {¶ 55} We have held: 18 January Term, 2011 {¶ 56} “When confronted with an issue of contractual interpretation, the role of a court is to give effect to the intent of the parties to the agreement. We examine the insurance contract as a whole and presume that the intent of the parties is reflected in the language used in the policy. We look to the plain and ordinary meaning of the language used in the policy unless another meaning is clearly apparent from the contents of the policy. When the language of a written contract is clear, a court may look no further than the writing itself to find the intent of the parties. As a matter of law, a contract is unambiguous if it can be given a definite legal meaning. {¶ 57} “On the other hand, where a contract is ambiguous, a court may consider extrinsic evidence to ascertain the parties' intent. A court, however, is not permitted to alter a lawful contract by imputing an intent contrary to that expressed by the parties.” (Citations omitted.) Westfield Ins. Co. v Galatis, 100 Ohio St.3d 216, 2003-Ohio-5849, 797 N.E.2d 1256, at ¶ 11-12. {¶ 58} I do not agree that the term “arising out of” is ambiguous. The court of appeals and two other courts have stated that “ ‘ “[a]rising out of” means generally “flowing from” or “having its origin in” ’ ” and that in order for coverage to be excluded, there need only be some causal link to the property rather than a showing that the premises were the proximate cause of the injury. Westfield Ins. Co. v. Hunter, 2009-Ohio-5642, 2009 WL 3415894, ¶ 12, quoting Nationwide Mut. Fire Ins. Co. v. Turner (1986), 29 Ohio App.3d 73, 77, 29 OBR 83, 503 N.E.2d 212, quoting Ins. Co. of N. Am. v. Royal Indemn. Co. (C.A.6, 1970), 429 F.2d 1014, 1017. {¶ 59} The majority rejects this causal-connection definition, the lead opinion saying that it means that “any claim for injury that occurs on premises owned by the insured other than the insured homeowner’s primary residence would be denied, and the insured would not have liability coverage.” Lead opinion, ¶ 18. But that is exactly what was bargained for in this homeowner’s 19 SUPREME COURT OF OHIO policy. Westfield collected premiums for the premises listed on the declarations page, which also included rental property owned by the Hunters. Grinnell collected its premiums to provide coverage for the Hunters’ Indiana farm. {¶ 60} The only reason the Hunters are being sued is that they own the Indiana farm property and allegedly breached a duty of care owed to the children on the property. The personal liability that is claimed arises out of the premises. {¶ 61} Insurance involves the transfer of risk from insured to insurer. Here Westfield agreed to assume the risk of liability for injuries occurring at, flowing from, having their origin in, or having a causal connection with the Hunters’ Hamilton, Ohio residence or the neighboring rental property. Westfield was paid to assume those risks. Westfield further specified that it would not provide liability coverage for injuries arising out of other premises that were owned by the insureds but were not an insured location. Grinnell similarly agreed to assume risks of injuries occurring at, flowing from, having their origin in, or having a causal connection with the Hunters’ Indiana farm while excluding injuries arising out of other premises owned by the insureds that are not an insured location, and Grinnell was paid premiums for that coverage. The complementary nature of these policies supports reading the plain language of the policies as providing coverage for injuries arising from the insured location and excluding coverage for injuries arising out of other premises owned by the insured that are not an insured location.