What it does
CG 20 17 adds each unit-owner as an additional insured, but only for liability as a member of the homeowner or townhouse association shown in the Declarations as a named insured. Unit-owners are not covered for liability arising from the real property they hold title to, or the part of the premises reserved for their exclusive use.
Who needs it
HOAs and townhouse associations, where owners can be sued over common areas such as pools, clubhouses, private roads and landscaping.
Key provisions and limits
- The 12 19 edition is titled "Unit-Owners Of Townhouse Or Homeowner Associations"; the earlier 10 93 edition was titled "Townhouse Associations".
- Coverage applies only to the extent permitted by law.
- Contract-based limits: coverage is no broader than any contract requires, the most paid for the additional insured is the lesser of the contract-required amount or the policy limits, and the endorsement does not increase limits.
Quoting and selling notes
- Pair with directors and officers coverage for the association board; CGL does not cover management decisions.
- Condominium associations use CG 20 04.
