Supplemental insurance coverage defending a home-owner’s affiliation (HOA) from earthquake-related injury sometimes 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 accountable for acquiring protection for the interiors of their items.
Given the possibly catastrophic monetary affect of earthquakes, any such protection is essential for HOAs in seismically lively 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 may face important particular assessments levied on owners, 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 neighborhood disruption.
