HOA Insurance

HOA Insurance

So, no surprise, the Trayvon Martin insurance claim is going to court.

It is not unusual for HOA insurance claims to go to court before the insurer pays on the policy.  What is a little more unusual is for an insurance company to sell an HOA a policy after the major incident.

About a month after the shooting, the federal filings show, Travelers issued an insurance policy to the homeowners association, effective March 30. “After the inception of the claims-made policy, Fulton made a claim for monetary damages…” Travelers says “…as a result of the fatal shooting of Martin.”

Looks like somebody was asleep at the wheel over at Travelers.  The fact that this claim was not made but was probably anticipated is not the issue before the court though, rather one of the exclusions claimed by Travelers.

The insurance company cites an exemption in its policy with the homeowners association, which says the insurer “shall not be liable to make any payment” arising from “bodily injury, sickness, mental anguish, emotional distress, disease or death of any person, provided that this exclusion shall not apply” to allegations “made as part of a Claim for Wrongful Employment Practices.”

The insurer has asked the court to rule that Travelers “has no duty to defend The Retreat at Twin Lakes” against Fulton’s claim. The amount of Fulton’s claim is not explicitly stated in the court filings, but the insurance company writes that the “amount in controversy exceeds the sum of $75,000.”

So, as we always advise, make sure your HOA is well-insured.  But, perhaps this case will show that it is never too late to get a policy in place.



UPDATE:  Here is an attorney’s analysis of some of the claims we’ll see in this case.  Lindsay makes some good points.


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