Supplemental insurance coverage defending a house owner’s affiliation (HOA) from earthquake-related harm sometimes covers widespread areas and buildings owned by the affiliation. For instance, this might embody harm to a clubhouse, swimming pool, or exterior partitions of condominium buildings. Particular person unit house owners are normally accountable for acquiring protection for the interiors of their items.
Given the possibly catastrophic monetary impression of earthquakes, this kind of protection is essential for HOAs in seismically energetic areas. It might defend the affiliation’s monetary stability by mitigating the prices of repairs and rebuilding after an earthquake. With out such protection, HOAs might face important particular assessments levied on householders, probably resulting in monetary hardship and protracted authorized battles. Traditionally, the absence of ample earthquake insurance coverage has led to the dissolution of some HOAs following main seismic occasions. The long-term penalties can embody depressed property values and prolonged group disruption.
