I own a 2-bedroom condo and had rented out one of the bedrooms. My roommate and I didn’t get along from the start, and we had numerous issues. She and her boss verbally harassed me to the point where I had to file a protection from harassment order against her. Later I got the order dismissed without prejudice since she decided to move out, and I didn’t want to stretch it out as I would’ve no contact with her. Now, exactly one year later, my ex-roommate has sent me a court summons.
I have personal liability insurance through my Home Insurance Policy. Will it cover lawsuits and legal defense costs? I’m extremely stressed and anxious. I contacted my insurance company, and they assigned me a litigation specialist. However, she’s waiting to hear back from the insurance company about something called “your liability insurance.” I’m unsure if I should hire an external lawyer, but I don’t have much money and I’m very stressed if my insurance will cover it or not.
Posted by SumCher
5 Comments
You have personal liability through your HOA? I very much doubt that. Have you opened a claim with your own homeowners insurance?
I’ve never seen an HOA liability policy that would cover you for something like this. I’m not saying that it doesn’t exist, just that I haven’t run across it in a couple of decades of dealing with liability insurance for HOA’s. Are you sure you don’t mean your Homeowners insurance? If so, maybe this is covered – it will depend on the allegations. If not, it still depends on the allegations.
It may be that your HOA’s insurance took the claim for some reason and is trying to involve your own Homeowners (or Condo Owners, depending on exactly what you have) coverage since that’s who should be handling this.
What is the lawsuit about? Policies cover the costs of defense for things that are covered under the policy, but not for things that wouldn’t be covered under the policy. It’s a good sign that they assigned a litigation specialist, but for now they’re likely just an adjuster (albeit one who handles active litigation claims) who is going to assess the allegations of the lawsuit and make an initial determination about coverage. If they retain a lawyer on your behalf, you can breathe a lot easier. Good luck.
NAL or Claims Person, but have seen a bit or two.
Defense cost are included in your homeowner policy. They will provide a defense (hire an attorney for you) for covered causes mentioned in your summons. Forward any documents or let them know if you received any contact from the other party. Unless otherwise advised, do not respond to the other party other than saying your insurance is reviewing this.
Your “litigation specialist” is most likely asking for a copy of your policy. After reviewing the policy and summons they will advise you what will be covered and remind you of your liability limits. If they think you should hire another lawyer, they will tell you.
You should read your HOI policy… I’m going to venture a guess that the property is insured as a primary residence and that you’re probably SOL if you’re attempting to use the policy in what amounts to a landlord/tenant dispute.