Supplemental insurance coverage defending a home-owner’s affiliation (HOA) from earthquake-related injury sometimes covers frequent 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 answerable for acquiring protection for the interiors of their models.
Given the possibly catastrophic monetary affect of earthquakes, any such protection is essential for HOAs in seismically energetic areas. It could possibly defend 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, probably 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 embrace depressed property values and prolonged group disruption.
