Posted by John Merchant on March 08, 2007 at 01:12:42:
Sure, he could report to his HO ins. carrier/co. but it’d be close to unique if that coverage covered any car wreck he had, or anybody hurt by his car.
I’ve collected lots of ins. $$$ for clients over the years, but recall NO cases where that happened.
Conceivably it could happen that he was operating his car on that property and maybe ran over somebody in his own driveway…and then and there the HO coverage MIGHT be applicable and construed by a court to cover the car owner and operator.
The law firm defending the HO co. would put up a battle to keep their client HO co. free of liability if at all possible, so it wouldn’t be any gimme…just think of the huge precedent that would be set if that HO co. paid any money for such, so it’d be worth the HO co. spending a huge amount on legal defense to keep that from happening.
So my opinion, for what it’s worth is don’t count on that insurance policy paying anybody anything.
Ok here’s the situation. I have a seller who is willing to unload a property for about 50% FMV because he is behind in taxes and is unemployed. He’s moving with a friend out of state so he wants to sell quickly. Although he has no mtg. on the property, according to him he has a personal judgment against him for $50k as he was liable in an auto accident just last year and was uninsured (motorist) at the time. He says the judgment was granted because he owned property. My question is, since he had no auto insurance, but DOES HAVE HOMEOWNERS INSURANCE, can he report his auto accident to his homeowner’s insurance company to pay off his personal judgment? Does it depend on what type of homeowner coverage he has (additional rider?)? Anyone ever heard of this type of rider, or would this be normal coverage under his HO policy? I know I may need to get more info from him but I thought I would ask in general because its an interesting scenario, and on top of that, the judgment may affect the deal because he may not get what he needs (money) to move. Any responses are appreciated…thanks.