Court Opinion

ID: 9723538
Source: CourtListenerOpinion
Date Created: 2023-08-26 10:19:03.664988+00
Date Added: 2024-06-11T18:24:49.404530
License: Public Domain

JUSTICE BARRY, dissenting: I would affirm the trial court; therefore, I must dissent. As indicated in the majority opinion, State Farm contends that only arrangements to rent one’s residence while away on vacation or on a business trip would qualify as an “occasional” rental; a full-time rental after the owner has moved out of the residence with no intention to return would not qualify. Rainwater, on the other hand, argues that this was an irregular and singular event during her 12-year period of ownership of the home. In my view, one short rental period during her 12 years of ownership should qualify as “irregular.” Also, I think it significant that she plainly was not in the business of renting the house as a regular source of income. The exclusionary clause of the contract is ambiguous in that the phrase “on an occasional basis” is not defined and is subject to more than one reasonable interpretation. In such situation, the law is clear: “Where the terms of an insurance policy are ambiguous or are subject to more than one reasonable construction, the policy should be construed in favor of the insured and strictly against the insurer. [Citations.] This is especially true as to any ambiguities found in an exclusionary clause.” Reliance Insurance Co. v. Martin (1984), 126 Ill. App. 3d 94, 96, 467 N.E.2d 287. Plainly, provisions by which the insurer seeks to limit its liability are construed against the insurer and in favor of the insured. (Squire v. Economy Fire & Casualty Co. (1977), 69 Ill. 2d 167, 370 N.E.2d 1044; Dobosz v. State Farm Fire & Casualty Co. (1983), 120 Ill. App. 3d 674, 458 N.E.2d 611.) In a case which involved an exclusion from homeowner’s coverage for damage arising out of business pursuits of the insured, the court held that exclusionary provisions are applied only where the terms are clear, definite and explicit. (State Farm Fire & Casualty Co. v. Moore (1981), 103 Ill. App. 3d 250.) As the drafter of the insurance policy, State Farm could have stated its rental exclusion clearly and precisely. By using unclear terminology, susceptible to more than one reasonable interpretation, State Farm created an ambiguity which must be construed against State Farm and in favor of the insured. The majority has apparently concluded that the contract is not ambiguous. I cannot agree. I would affirm the decision of the trial court.