Q

Our HO 00 03 05 01 insured owns, in conjunction with several other people, a private "parking condo." The homeowners insurer says it cannot provide property insurance for the condo, and it wants to charge a full CGL premium to cover the insured's liability for his use of the parking condo.

We believe that this is asking too much. What can we do to convince the carrier otherwise?

Puerto Rico Subscriber

A

The parking condo you describe in your letter is covered for liability under the homeowners policy at no charge. It meets the definition of "insured location" under definition 4(c), "any premises used by you in connection with a premises in 4(a) or 4(b) above."

Since your insured owns this parking condo in conjunction with several other people, the property insurance situation needs to be explored. There is no way to write property coverage on just his portion of the building. The owners of the condos need to form an association in order to purchase property coverage on the building.