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Insurance Coverage Q&A: Damage to Dividing Wall of Leased Premises

Discusses property damage liability when insured operations damaged the dividing wall of an adjacent space.

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My insured is a bouncy house rental company in TX. Over time they damaged a dimising wall that separates their leased premises from the adjacent space. Under the CGL, exclusion J., property you own, rent or occupy, there would be no coverage for the repair to the wall in the insured’s leased premises. But is there coverage for the wall on the side of the adjacent space? It is one wall separating the two spaces but used by two separate entities leasing out the spaces.

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