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 embody injury to a clubhouse, swimming pool, or exterior partitions of condominium buildings. Particular person unit house owners are often chargeable for acquiring protection for the interiors of their items.
Given the possibly catastrophic monetary impression of earthquakes, such a protection is essential for HOAs in seismically energetic areas. It could possibly shield the affiliation’s monetary stability by mitigating the prices of repairs and rebuilding after an earthquake. With out such protection, HOAs might face vital particular assessments levied on householders, 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 embody depressed property values and prolonged group disruption.
