Question About Condo Policy [CA]
I’m reviewing the personal liability section of my condo policy, which states: “If a claim is made or a lawsuit is filed for damages due to bodily injury or property damage covered by this policy, we will…” (followed by a list of actions we will take).
However, there’s a notable exclusion related to assessments issued by the association board: “liability assumed by any insured under any contract or agreement to pay special assessments levied against the condominium owners by the governing rules of the condominium.” That said, this exclusion does not apply to losses covered under Coverage D (Loss Assessment), which affects the entire complex and not individual owners.
The problem arises because the board seems to have misapplied the governing rules to justify their decision to impose assessments. Their rationale seems to stem from discontent over residents posting about HOA matters on social media, which is actually protected by law (CACIV 4515). They have made other dubious claims, asserting they operate as a “private corporation” and that all business information is confidential.
These assessments have gone unpaid as they are disputed items, but the board has now initiated collections proceedings against the owners.
If a homeowner refuses to pay these assessments due to the board’s questionable actions, can they submit the board’s claims to their insurance company without being affected by the exclusion clause?
It sounds like you have a complex situation involving your condo association and the assessments they have levied against you. In general, here are some points to consider regarding your insurance policy and the potential for submitting a claim:
Understanding Exclusions: The exclusion you’ve noted in your condo policy specifically addresses liability assumed under a contract or agreement for special assessments. If your insurance policy states that this exclusion applies to any assessments levied by the board, it might complicate the situation if you’re considering filing a claim related to those assessments.
Coverage D – Loss Assessment: As you mentioned, Coverage D may provide some protection for losses that affect the entire complex, which seems to be distinct from individual assessments directly tied to your personal obligation. You should carefully review this coverage to understand your specific rights and any applicable limits.
Malicious Action: If you believe the board has acted maliciously or outside their governing rules, this may strengthen your case against the validity of the assessed charges. However, proving that they acted with malice or unlawfully can be quite complex and may need to be substantiated through legal means.
Filing a Claim: If you decide to file a claim with your insurance, it’s essential to clarify the nature of the claim. If the board’s action leads to potential bodily injury or property damage in a way not excluded by your policy, you may be able to argue that it falls under your policy’s coverage. However, the assertion that the assessment is unjust won’t automatically exempt you from the exclusion.
Consult Legal Guidance: Given the nuances in both your insurance policy and the actions of the condo board, it would be wise to consult with a legal professional who specializes in HOA law or insurance disputes. They can provide you with tailored advice based on the specific details of your situation and help navigate the complexities involved.
Communicating with Your Insurer: Before filing a claim, it might also be beneficial to contact your insurance agent to discuss your situation. They can offer insights into how your policy might respond and help you determine the correct course of action.
Ultimately, while there may be ways to argue against the assessment based on the board’s actions, the language in the policy regarding exclusions will significantly affect whether you can successfully submit a claim. Getting professional help is a critical step in resolving this matter effectively.