TinoS (California)
Posts: 85
Posts: 85
Posted:
We are a 16 unit HOA in California. Our CC&Rs are old and were written in a time before earthquake insurance was so extremely expensive. Some members, and members of the board, think it is not worth having anymore. The amount of companies offering it are limited, the coverage isn't very good, the unknowns about the company and the realities of what is covered are extremely high and it represents 20% of our dues. I am trying to understand whether our CC&Rs force the board to buy it and to learn if maybe there is some part of California state law that might override our CC&Rs.
Here is the only section in our CC&Rs that mentions earthquake insurance:
Section 4. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents in the Properties and for the improvement and maintenance of the Common Area, and the maintenance of the Properties as hereinafter provided.
Without limiting the generality of the foregoing paragraph, there shall be included and provided for in the annual assessments all amount to cover reasonably the following expenditures by the Association:
(b) A policy or policies of fire insurance, with extended coverage endorsement, and earthquake insurance for the structural improvements and equipment and other personal property of the Association on the Common Area, and all structures and other improvements on each Lot;
(for brevity I am leaving out items a, c, d, and e)
Then following that section is a lot of text about how insurance proceeds from a claim would be distributed. "Earthquake" is only mentioned once in that above section of our CC&Rs.
\Tino
Here is the only section in our CC&Rs that mentions earthquake insurance:
Section 4. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the residents in the Properties and for the improvement and maintenance of the Common Area, and the maintenance of the Properties as hereinafter provided.
Without limiting the generality of the foregoing paragraph, there shall be included and provided for in the annual assessments all amount to cover reasonably the following expenditures by the Association:
(b) A policy or policies of fire insurance, with extended coverage endorsement, and earthquake insurance for the structural improvements and equipment and other personal property of the Association on the Common Area, and all structures and other improvements on each Lot;
(for brevity I am leaving out items a, c, d, and e)
Then following that section is a lot of text about how insurance proceeds from a claim would be distributed. "Earthquake" is only mentioned once in that above section of our CC&Rs.
\Tino