Supplemental insurance coverage defending a home-owner’s affiliation (HOA) from earthquake-related injury usually covers widespread areas and buildings owned by the affiliation. For instance, this might embrace injury to a clubhouse, swimming pool, or exterior partitions of condominium buildings. Particular person unit homeowners are normally liable for acquiring protection for the interiors of their models.
Given the doubtless catastrophic monetary influence of earthquakes, this kind of protection is essential for HOAs in seismically energetic areas. It could actually 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 satisfactory earthquake insurance coverage has led to the dissolution of some HOAs following main seismic occasions. The long-term penalties can embrace depressed property values and prolonged group disruption.
