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, latimes.com/
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.signalscv.com/
Los Angeles Department of Building & Safety – Soft Story Retrofit Program
Resources & Links
Los Angeles Department of Building & Safety – Soft Story Retrofit Program
Insurance “Agents” checklist for the best coverage
Community Assoc Network on Insurance
Pros & Cons of Earthquake Coverage?
Insurance Section – Operating Costs for HOA’s – CA Dept of Real Estate
Related Pages in Financial Review Mandated §5500 Section
- Accounting & Management Software
- Attorney Fees
- Bankruptcy
- Disclosures §5300
- Fiduciary Responsibility
- Illegal Late Fees – Usury
- Insurance
- Reserve Study §5550
