Napa’s recent 6.1 earthquake has left many Bay Area homeowners wondering if their homes are properly protected in the event of another big quake.
Does the HOA’s earthquake insurance cover my home?
A common misconception among homeowner’s association members is that the HOA’s earthquake insurance policy includes all of the coverage they need. While most master policies cover damage to the structure of the building, they do not cover individual owners’ personal property, loss of use, or earthquake loss assessment. This means that in the event of a devastating quake the HOA’s policy may cover the structural damage on the exterior of your unit, but will not pay to replace your damaged belongings, make interior repairs, or if your unit becomes no longer structurally sound, pay for a place for you to stay while repairs are made. It also does not cover loss assessment, which means if the HOA’s earthquake insurance limits of coverage turn out to be insufficient for the amount of damage that occurs during an earthquake, the cost to make the rest of the exterior repairs could potentially fall back on homeowners in the form of a special assessment.
What happens if my HOA doesn’t have earthquake insurance?
If your HOA does not carry a policy and exterior building damage takes place in an earthquake, the Board of Directors will refer to the CC&R’s for assessing unit owners the cost to make repairs.
How do I go about obtaining my own earthquake insurance?
Although earthquakes are not covered by your homeowners insurance, this type of coverage can be linked with your HO6 policy, so adding this extra coverage should be discussed with your personal insurance agent to come up with a plan that works best for you.
Please visit the websites below for more information on earthquake insurance and preparedness tips to make sure you’re ready for the Bay Area’s next big quake.
For earthquake insurance information: http://www.earthquakeauthority.com/CEAindex.aspx
For information on preparing your home and family: http://www.ready.gov/earthquakes
PRWeb. Vocus PRW Holdings LLC, 04 Sept. 2014. Web. 04 Sept. 2014.
Reitman, Lisa. “Earthquake Insurance FAQ’s.” Message to various clients. 26 Aug. 2014. E-mail.