How to Get HOA Insurance That Covers Earthquakes in California
You already know that earthquakes are a reality if you reside in California. Condo associations and HOAs (Homeowners Associations) should consider earthquake insurance even though most people concentrate on safeguarding their residences. The problematic aspect is that not all HOA insurance covers earthquakes.
This post will explain how to find the best earthquake-related HOA insurance in California, what to look for, and why it's so crucial. This is your easy, stress-free summary, regardless of whether you are a resident, property manager, or a member of the HOA board.
HOA insurance: what is it?
Common areas and structures are protected by HOA insurance, also known as a master policy, which is owned by a homeowners organization. Usually, it includes:
- Common spaces such as clubhouses, lobbies, elevators, stairwells, walls, and roofs
- Liability for injuries in shared spaces
- Sometimes water damage or vandalism
The hitch is that a typical HOA insurance policy often does not cover earthquake damage. That can be a significant risk in California, where earthquakes frequently occur.
Why Most HOAs Don’t Include Earthquake Coverage
There are two primary causes:
- Cost: Purchasing earthquake insurance can be costly, particularly for residences close to fault lines or older structures.
- Misunderstanding: It is sometimes too late for many board members to know they are excluded.
If there isn't a separate earthquake policy, the HOA would be left with enormous repair fees in the event of an earthquake. These costs might then be passed on to residents through special assessments.
What Is HOA Earthquake Insurance?
HOA earthquake insurance is a separate or added policy that covers damage to the shared building structure caused by earthquakes. It often includes:
- Structural damage to shared buildings
- Loss of use or temporary housing for residents
- Debris removal
- Engineering and inspection fees
It’s important to note that this doesn’t typically cover personal belongings inside individual units—each homeowner needs separate condo (HO-6) insurance with earthquake coverage for that.
How to Get HOA Insurance That Includes Earthquakes
Here’s a step-by-step guide to help your HOA or condo association get earthquake HOA insurance coverage:
1. Review Your Current HOA Policy
Before buying anything new, check what’s already covered. Most standard HOA insurance in California will not include earthquakes, but it’s best to verify. Look for:
- Earthquake exclusions
- Coverage limits
- Deductibles
2. Speak with an Insurance Expert
You have to open communication with experts. Because the type of building, location, year of construction, and other factors all affect earthquake insurance, which is complicated. Working with a company like e360insurance.com that specializes in HOA insurance coverage in California is the best option. They can assist in comparing options from various carriers.
- Make policy changes to accommodate your HOA's particular needs.
- Describe the premium structures and deductible possibilities.
3. Recognize Policy Types and Deductibles
The deductibles for the majority of HOA earthquake plans are percentage-based and typically range from 5% to 20% of the insured value
To reduce this expense, several policies provide "deductible buy-down" choices.
4. Get Quotes and Compare Coverage
Not all earthquake insurance policies are equal. Ask about:
- Coverage limits: Make sure they match your building’s value
- Loss assessment coverage: Helps protect individual homeowners from special assessments
- Exclusions: Know what’s not covered
- Additional living expenses: Covers temporary housing if units become uninhabitable
5. Educate HOA Members
Some HOAs require a vote to add earthquake insurance because it may raise monthly dues. Be transparent about:
- Why earthquake insurance is necessary
- The financial risks of not having it
- How much each homeowner may be responsible for if there’s no coverage
What About Individual Condo Owners?
If your HOA doesn’t carry earthquake insurance—or even if it does—you might still want personal earthquake insurance for:
- Interior unit repairs
- Damaged personal belongings
- Temporary relocation expenses
These come under HO-6 policies with earthquake endorsements. It’s worth asking your agent about this for extra protection.
Summary
Making sure your HOA insurance policy contains the appropriate protection is part of being earthquake-ready when you live in California. Don't wait until a tragedy occurs to discover that earthquake damage is not covered by your policy.
To obtain rates, ask questions, and obtain the coverage your community need, work with knowledgeable providers like e360insurance.com.