(HNOA) – HIRED/NON-OWNED AUTO

One coverage that is often misunderstood or rarely talked about when it comes to Homeowner Associations is coverage for “Non-Owned Autos.”   Despite this coverage being relatively unknown it is very important . You should make sure the Association’s current policy has this in force.  It is very inexpensive to add in the event there is no current coverage.    Most Associations do not have “owned autos” so one might ask why coverage for a “non-owned auto?”

Let’s use the example in which the Association asks one of its Board members to drive to the Management Company’s office to review and discuss the budget.  On the way to the Manager’s office, there is a horrible auto accident and the Board member is determined to be the party at  fault.  The injured party litigates the driver of the vehicle (the Board member) as well as the Association.  The allegation against the Association is that the Board member was travelling on behalf of the Board and therefore the Association should also be a defendant.

In order to have coverage for defense, let alone indemnity if the Association is found to be liable, coverage for “non-owned auto” must be included in the Association's insurance portfolio.

Non-owned auto is defined as “those autos you do not own, lease, hire, rent or borrow that are used in connection with your business.  This includes autos owned by your employees, partners, members, or members of their households but only while used in your business or your personal affairs.”

ABOUT CRUMMACK HUSEBY PROPERTY MANAGEMENT, INC.
WE ARE BUILDING RELATIONSHIPS & GROWING COMMUNITIES.
Crummack Huseby utilizes a personal approach to create and develop one-of-a-kind property management programs for new and existing communities. Our award-winning talent would be honored to present their unparalleled methods in property management and builder services to your team or board. For more information, please visit ch-pm.com or call 888-399-9430 Toll-free

Crummack Huseby Property Management, Inc.
25531 Commercentre Drive Suite 100 Lake Forest, CA 92630