Supplemental insurance coverage defending a house owner’s affiliation (HOA) from earthquake-related harm sometimes covers frequent 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 homeowners are often answerable for acquiring protection for the interiors of their models.
Given the possibly catastrophic monetary impression of earthquakes, one of these protection is essential for HOAs in seismically lively areas. It could shield 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, doubtlessly resulting in monetary hardship and protracted authorized battles. Traditionally, the absence of enough 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 neighborhood disruption.
