CA Earthquake Authority Policy for Unit Owners

In California, a separate condo-unit earthquake insurance policy is required to cover the effects of a quake. Without an earthquake policy, you will be confronted with the financial burden to replace and repair dagmages inside of your unit, such as the walls, flooring, furniture, electronics, clothing, and sports equipement. The California Earthquake Authority website is a great resource to learn more about condominimum unit earthquake insurance.

How does a condominium unit owner’s earthquake insurance policy work with an HOA earthquake policy in the event of an earthquake?
In the event of an earthquake, the way a condominium unit owner’s earthquake insurance policy (CEA) works in conjunction with a homeowners association (HOA) earthquake policy can vary depending on the specific insurance policies and the governing documents of the condominium association. Here are a few scenarios that might help illustrate how these policies could interact:

1. Separate Coverage: In some cases, the condominium unit owner and the HOA may each have their own separate earthquake insurance policies. In this scenario, the unit owner’s policy typically covers damages to their individual unit, personal belongings, and any improvements made to the unit. The HOA’s policy generally covers common areas, shared structures, and the exterior of the building. If an earthquake occurs, the unit owner’s policy would primarily handle their personal losses, while the HOA’s policy would cover damages to the common areas and the building’s structure.

2. Master Policy Coverage: Alternatively, the HOA may have a master insurance policy that includes coverage for both the common areas and individual units. In this case, the unit owner’s policy may be more limited, possibly focusing on personal belongings, interior fixtures, or upgrades not covered by the master policy. If an earthquake occurs, the unit owner’s policy would cover the specific items outlined in their policy, while the master policy would handle damages to the entire building, including both common areas and individual units.
It’s important to review the insurance policies and governing documents of the condominium association to understand how coverage is allocated and what is covered by each policy. The specific terms, conditions, and coverage limits can vary, so it’s advisable to consult with the insurance provider and potentially seek legal advice if you have specific questions regarding your situation.