Chapter: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Insurance and Liability
Article: 1 | no article name/number
Section: 6840 |

Section 6840 - Limitation of Member Liability

(a) It is the intent of the Legislature to offer civil liability protection to owners of the separate interests in a common interest development that have common area owned in tenancy in common if the association carries a certain level of prescribed insurance that covers a cause of action in tort.
(b) Any cause of action in tort against any owner of a separate interest arising solely by reason of an ownership interest as a tenant in common in the common area of a common interest development shall be brought only against the association and not against the individual owners of the separate interests, if both of the insurance requirements in paragraphs (1) and (2) are met:
  (1) The association maintained and has in effect for this cause of action, one or more policies of insurance that include coverage for general liability of the association.
  (2) The coverage described in paragraph (1) is in the following minimum amounts:
   (A) At least two million dollars ($2,000,000) if the common interest development consists of 100 or fewer separate interests.
   (B) At least three million dollars ($3,000,000) if the common interest development consists of more than 100 separate interests.

Prior Law:  Old CID Section 1365.9

Similar to:  CID Section 5805