Opinion ID: 157823
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Heading: Coverage Under Homeowners’ Policy

Text: An insurance policy is a contract between the insurer and insured. Royce v. Citizens Ins. Co., 557 N.W.2d 144, 146 (Mich. App. 1996).2 When called upon to construe an insurance contract, a court must read the contract as a whole and give meaning to all the terms contained within the policy. Id. at 147. The policy language should be construed according to its plain meaning “so that technical and strained constructions are avoided.” Id. “A policy is ambiguous when, after reading the entire document, its language can be reasonably understood in different ways.” Id. If the court determines the policy is ambiguous, it must construe the policy in favor of coverage. Id. Where the language clearly and unambiguously excludes coverage, however, the court 2 The district court found that Michigan law governed the interpretation of the homeowners’ policy. The parties do not dispute this finding on appeal. Accordingly, we analyze the homeowners’ policy under Michigan law. 4 must enforce the terms of the agreement. Id. At dispute in this case is the following language in the homeowners’ policy issued by Auto-Owners: Under the Personal Liability Coverage we do not cover: