How many times have we heard the question, “If an association tree falls on my car, who pays for the damage?” Ignoring thoughts of who may be around when the tree falls in the forest, the answer to the question is really quite simple.

Certainly, the finger pointing begins the moment the first scratch appears on a vehicle. Usually, those fingers are pointed in one direction, to the association, because the association maintains the common area. However, the issue is not really in who maintains the tree, but in whether the tree was properly and prudently maintained.

Vehicle owners have insurance coverage available to them on their auto insurance policy. This coverage is called Comprehensive, or Other Than Collision, coverage. Examples of instances in which this coverage would apply are runaway shopping carts, parking lot door dings, and fallen trees. Claims covered as a Comprehensive loss do not affect the auto insurance rate of the policyholder.

In order for the Association’s liability insurance to apply, the association must have been negligent (i.e., must have failed to act prudently). If the Association has actively maintained the common area, including regular inspection of the condition of trees, and there are no unanswered complaints or concerns from the membership, it would be difficult for the Association to be considered negligent in the maintenance of the fallen tree. The owner of the damaged vehicle would make a claim to his/her auto insurance company for Comprehensive loss. The insurance company would repair the vehicle, less the deductible on the vehicle owner’s policy.

If, for some reason or another, it is determined that the Association was negligent in the maintenance of the fallen tree, the Association’s General Liability insurance would pay for cost to repair the damaged property.

In short, if the association is responsible because it failed to maintain the tree, the association insurance policy likely takes care of the damage. If the association did everything it could to maintain the tree, and it still fell, the damaged vehicle is repaired by the vehicle owner’s insurance policy.

Michael Berg, MBA, CIRMS, CMCA is the President and CEO of Berg Insurance Agency and may be reached at michael@berginsurance.com