Legal Question in Insurance Law in California

Insurance coverage within common interest community

Our HOA has adopted new rules requiring proof of insurance for vehicles routinely housed within the community. The streets are not public but are owned and maintained by the HOA. It is our opinion that proof of insurance is needed to circumvent the occurrance of the owner/driver of the vehicle from having cancelled their insurance, after obtaining state registration tags, for many reasons; ie, save money, spite, etc.. It is further our position that your average automobile insurance policy does not cover accidents on private property. Our concern centers mainly in the realm of this 'uninsured' driver running over a small child and then the parents of the child goes after the HOA with a lawsuit. If the driver is required to have insurance, then the chances of this suit against the HOA might be prevented; hopefully. It's our understanding that many apartment complexes do require this as a normal occurrance.

Are we correct that the insurance does not cover instances that occur on private property? Comments/opinions appreciated.


Asked on 4/21/02, 2:15 am

3 Answers from Attorneys
Michael Cortson Law Office of Michael D. Cortson, Esq.

Re: Insurance coverage within common interest community

The auto insurance does cover accidents on private property. If an accident happens on the HOA property you can't stop a lawsuit against the HOA if it appears there was some sort of negligence on the part of the HOA. e.g. lack of signs, poor design or maintenance. Your HOA CGL policy should cover the HOA. Much ado about nothing here. So long as the HOA coverage is in place you should be fine. I've done insurance related matters for over 17 years.

I don't know how you came to the conclusion there was no coverage on private property. That would cause a real mess for every parking lot accident.

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Answered on 4/22/02, 9:16 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Insurance coverage within common interest community

I have written insurance policies for insurance companies. The law REQUIRES that auto policies cover accidents on private property.

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Answered on 4/23/02, 1:14 am
Steven Murray Steven W. Murray, APC

Re: Insurance coverage within common interest community

Auto insurance covers accidents anywhere - on public or private property.

I would suggest that the HOA make sure its own general liability policy covers auto related accidents concerning its upkeep/repairs/design/signs/etc. on its property. Some general liability policies exclude auto related suits/claims, since the HOA is responsible for its own acts or omissions, not for those of individual homeowners (unless the individual is acting on behalf of the HOA.)

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Answered on 4/23/02, 2:53 pm


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