HOA Liability Ins. Policies

[Team Work]

What is the name of your state (only U.S. law)? California

If a former tenant sues a condo HOA and the owner of another unit (not the person they were renting from), is the HOA obligated to assist the owner being sued with legal representation under the HOAs liability policy? My gut reaction is to say, no, that the owner should have similar coverage under their own, individual homeowners insurance policy. But, I'd like to be sure. Any help is appreciated.

 

[tranquility]

I agree, no. The HOA is generally not required to defend an owner/tenant. But, facts would help guide.

 

[Team Work]

Thanks. In essence, a tenant had a dispute with the owner next door over night time noise. The tenant then moved out and is suing the HOA and the owner for emotional distress, among other things. The HOA then received a letter from an attorney claiming to be assisting the owner. It said that his assumption was that since the owner's monthly assessments were used, in part, to pay for the HOAs liability insurance, that the HOA should assist with the owner's defense in the suit. He then asked for the name and contact of the HOAs attorney being provided by the insurance company. I hope that helps.

 

[tranquility]

Since the insurance company IS covering it, the contract may give some third party beneficiary rights (And, the tenant waived any potential conflict of interest with the HOA.).