How Home Insurance Policies Relate to Motor Vehicle Accidents

Many people may not be aware that home insurance policies have anything to do with motor vehicle accidents, however, they do. If you’ve been involved in an accident, it’s important to speak with a lawyer as soon as possible to begin building a strong case.

In the case of Bawden v. Wawanesa Mutual Insurance Company, 2013 ONCA 717, eight year old Kelly Bawden was struck by a motor vehicle while riding her bicycle. Kelly’s parents sued the owner and operator of the motor vehicle for their daughter’s injuries. The insurer’s for the at-fault defendants in turn sued Kelly’s parents for failing to properly instruct and supervise Kelly. The Bawden’s home insurer, Wawanesa refused to defend the action against its insured, the Bawdens, taking the position that as Kelly lived with the Bawden’s, it fell within the exclusion provision and as such coverage was not available. The Court, after careful review of the Policy held that the exclusion must be clear and unequivocal in its restrictions with regard to the extent and scope of coverage and in this particular policy it was not. The Court held Wawanesa must defend the claim against Kelly’s parents. The decision was upheld by the Ontario Court of Appeal on appeal by Wawanesa.

What is to be learned from this case, the home owner policy is another avenue in a motor vehicle accident case in which to address claims for damages. It may be used as a sword or a shield. In this case, the home insurance policy was used as a sword by the at-fault driver to reduce liability. For the Bawden’s it was used as shield to protect from the negligence suit.

For more information, visit our accident lawyer section. If you have any questions, book a free consultation or call 1-855-446-7765 for immediate assistance.