Pros & Cons Earthquake Insurance for Condo’s


Does your HOA really need all the bells & whistles, if your budget doesn’t allow the premium? How will you come up with the 20% deductible on Earth Quake?

When damaging quakes happen, condo associations cannot commence repairs until they assess their members for uncovered common quake damage, either to defray deductibles on a master policy,

If the insurance deductible exceeds the amount of equity a homeowner has in his or her home, it may not make sense. Earthquake-insurance deductibles for associations are typically in the tens of thousands of dollars.

Would most homeowners be able to pay a $40,000 deductible, should an earthquake damage the structural integrity of their condominium? Would they want to if they owed $50,000 more than the condominium is worth? The answer is, probably not.

Los Angeles Department of Building & Safety – Soft Story Retrofit Program

Resources & Links

Los Angeles Department of Building & Safety –

Soft Story Retrofit Program hoa 

Insurance “Agents” checklist for the best coverage

Community Assoc Network on Insurance

Pros & Cons of Earthquake Coverage?

CA Earth Quake

Insurance Section – Operating Costs for HOA’s – CA Dept of Real Estate

D & O Directors & Officers Insurance

D&O insurance policies offer liability insurance coverage for the Directors and Officers of non-profit, for-profit, and privately held businesses.  Directors and Officers insurance helps protect them from defense costs and damages which may arise from managerial decisions that may have adverse financial consequences. All organizations are vulnerable to D&O insurance exposures


Directors and officers are sued for a variety of reasons related to their company roles, including:
  • Breach of fiduciary duty resulting in financial losses or bankruptcy
  • Misrepresentation of company assets
  • Misuse of company funds
  • Fraud
  • Failure to comply with workplace laws
  • Theft of intellectual property and poaching of competitor’s customers
  • Lack of corporate governance
  • Get more detail
Illegal acts or illegal profits are generally not covered under D&O insurance.   Hartford *

What is Not Covered by D&O Insurance?

A D&O policy will not cover claims that arise from the following:

  • Bodily injury
  • Property damage
  • Acting for personal profit
  • Breach of contract
  • Dishonest acts
  • Fraud
  • Intentional acts of noncompliance
  • Pollution
  • Claims covered by other insurance
  • Claims made under a previous policy

Corporate by-laws and/or indemnification agreements do not provide complete protection against D&O risk, so it is important to include D&O coverage in your insurance policy. *


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