Supplemental insurance coverage defending a house owner’s affiliation (HOA) from earthquake-related injury usually covers frequent areas and buildings owned by the affiliation. For instance, this might embody injury 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 doubtless catastrophic monetary impression of earthquakes, this sort of protection is essential for HOAs in seismically energetic areas. It may shield the affiliation’s monetary stability by mitigating the prices of repairs and rebuilding after an earthquake. With out such protection, HOAs may face vital particular assessments levied on owners, doubtlessly 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 neighborhood disruption.
