Rented Condominium Liability Coverage

August 4, 2010

Our insured has a Homeowners Unit Owner's policy (HO 00 06) and has filed a claim for property damage to the unit below his. The insured has a tenant living in his unit but it is unknown if the tenant has his own liability policy. The tenant left the water in the bathroom running, which caused damage to the bathroom ceiling of the unit below our insured's unit.
It is clear that the tenant was negligent for the resulting property damage. If the tenant does have his own policy, it would appear that the tenant's policy would be primary for this loss and the insured's policy would be excess. Can you verify if this is accurate? Also, if the tenant does not have his own policy, would our insured's policy be required to pay for damage caused by the negligence of our insured's tenant?

Massachusetts Subscriber

The tenant is a tenant and not an insured on the owner's policy; therefore there is no coverage for the acts of the tenant if the tenant does not have his own coverage. Liability coverage on the policy applies only if the insured is found to be legally liable. You also have a problem with the fact that the named insured wasn't living in the unit; in order for the unit to be an insured location or residence premises, the owner/named insured must be living there. Unless the insured has the HO 17 33, Unit-owners rented to others endorsement, there is no coverage under the HO 06 for this loss.

 

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