An agency is getting regular requests from homeowners associations (HOAs) to list the HOA as an additional insured on its tenants' renters insurance policies. However, none of the agency's renters insurance carriers will agree to do this. The carriers will only list the HOAs as certificate holders or additional interests.

Q: How can this request be fulfilled when no carriers will list HOAs as additional insureds?

Response 1: ISO has an endorsement for this situation if the HOA manages or leases the property to the renter: HO 07 50 03 22 Additional Insured – Managers or Lessors of a Premises Leased to an Insured.

Other than that, I am not aware of an ISO endorsement that will correctly remedy this problem. If there is a contractual requirement for the renter to name the HOA, the HO4 contains the following language:

F. Coverage E - Personal Liability

Coverage E does not apply to:

1. Liability:

a. For any loss assessment charged against you as a member of an association, corporation or community of property owners, except as provided in D. Loss Assessment under Section II - Additional Coverages;

b. Under any contract or agreement entered into by an "insured". However, this exclusion does not apply to written contracts:

(1) That directly relate to the ownership, maintenance or use of an "insured location" or

(2) Where the liability of others is assumed by you prior to an "occurrence" unless excluded in a. above or elsewhere in this Policy;

While Coverage E does not apply to any contract or agreement entered into by an insured, the exclusion does not apply to written contracts that directly relate to the ownership, maintenance or use of an insured location.

If the carrier doesn't have a generic endorsement it can use, and the request is just verbal or a written request that does not qualify as a contract requiring to name the HOA as an additional insured, I don't believe ISO has an answer. 

Response 2: As you no doubt know, the requesters really have no idea what "being an additional insured" really means and probably neither does your insured. The policy—unless it is a very unusual, company-specific form—already includes coverage for liabilities that the client agrees to in writing before any loss, so if your client has signed such a document, I would suggest sending a copy of the policy form with that area circled to the insured to provide to the requester. 

If that is not sufficient, explain to the insured that they are risking their own coverage limits because one loss equals one limit regardless of how many insureds or additional insureds are involved. The additional interest endorsement is a perfectly good alternative and my suggestion is you use that.

Alternatively, you could have a knowledgeable producer contact some of the HOAs in question and suggest a meeting to explain how these coverages work and discuss the best approach. You may even find new prospects who will value your agency's expertise and care.

Response 3: You've asked the right question and received an unsatisfactory answer. If none of your insurance companies will do it, then, it can't be done. 

To try and help your customers, contact one of the HOAs, explain that you're trying to comply, and see if they'll send you a couple of examples of proof of insurance that they've received—with all the confidential points of information blacked out, of course. This might give you a hint as to which insurance companies are doing this and exactly how they're doing it. 

This question was originally submitted by an agent through the Big “I" Virtual University's (VU) Ask an Expert service, with responses curated from multiple VU faculty members. Answers to other coverage questions are available on the VU website. If you need help accessing the website, request login information.

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