Civil Code §1365.9(b) provides that "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..."

However, to receive the protections described above, associations must purchase and maintain insurance with no less than the following minimums:

• $2 million for associations with 100 or fewer separate interests

• $3 million for associations with more than 100 separate interests

NOTE: These are minimums; associations may wish to maintain higher limits. In addition, the insurance must be on a "per occurrence" basis.

History. Section 1365.9 was added after the Ruoff v. Harbor Creek Community Association (1992) 10 Cal.App.4th 1624 decision. Ruoff, an elderly guest of a member, sustained serious injuries falling down defectively constructed stairs. She named the association and each owner because her injuries exceeded the $1 million liability limit of the association's insurance policy.

The owners were held jointly and severally liable for her injuries and resulted in a $4 million settlement. The case sent a chill through the industry and the California legislature responded by adding Civil Code section 1365.9 to protect owners from individual liability, provided the association maintains the minimum levels of insurance described in the statute.