The Role of Insurance in California HOAs and What Homeowners Should Understand
- Skip Daum
- Jan 20
- 4 min read
Did you know that California is home to over 50,000 homeowner associations (HOAs), collectively managing properties worth billions of dollars?
With such high stakes, ensuring proper insurance coverage is not just a legal requirement but a critical safeguard for communities.
However, navigating the complexities of HOA insurance can be daunting for both boards and homeowners.
At HOA Laws, we specialize in helping California HOAs and homeowners understand their insurance obligations and rights. From clarifying state-mandated requirements to resolving disputes, our expertise ensures your community is protected and compliant.
What Are the HOA Insurance Requirements in California?
California law sets specific rules and guidelines for the insurance policies that HOAs must carry. These laws are designed to protect the community and individual homeowners from financial losses caused by unforeseen events.
Under the California HOA insurance laws, associations must maintain insurance policies covering:
General Liability: This typically includes injury or property damage occurring in communal areas, such as clubhouses, pools, or walkways.
Property Insurance: Coverage must extend to all shared spaces and structures, such as roofs, exterior walls, and recreational facilities.
Fidelity Insurance (or Crime Insurance): Protects against financial loss due to employee dishonesty, like theft or fraud.
HOA boards are required to disclose insurance details annually to all members. This transparency ensures that homeowners understand the breadth of HOA insurance coverage and whether it aligns with community needs.
Master Policies vs. Individual Homeowners’ Coverage
A common area of confusion for homeowners is the relationship between the HOA’s master policy and their individual homeowners insurance for California HOAs (commonly referred to as an HO6 policy).
The Master Insurance Policy
The HOA’s master policy provides coverage for shared spaces, external structures, and, in certain cases, the exterior portion of individual units. For example, if a wildfire damages a condo building’s roof, the master policy typically kicks in to handle repairs.
An HO6 Homeowners Policy
While the master policy covers communal parts, it usually doesn’t extend to the interior of your unit or personal belongings. That’s where your HO6 insurance comes in. This personal policy can include:
Interior repairs (e.g., flooring, cabinets)
Personal property coverage (e.g., furniture, electronics)
Liability protection for incidents inside your home
Common Insurance Disputes in California HOAs
Even with clear policies in place, disputes over insurance coverage can arise. Here are a few frequent issues:
Water Damage
Water leaks often create conflicts between HOAs and homeowners. For example, if a pipe bursts between units, determining the boundary of responsibility can be tricky.
Typically, the HOA covers shared plumbing, while the homeowner is responsible for damage inside their unit.
Liability Claims
Slip-and-fall accidents in communal areas, like hallways or swimming pools, can lead to complicated liability debates. The HOA's liability insurance usually applies, but disputes may occur if the homeowner is seen as partially responsible.
Natural Disasters
Events like earthquakes and wildfires highlight potential gaps in HOA coverage. Sometimes, homeowners mistakenly assume the association’s policy will cover all damages, only to find that supplemental coverage is necessary.
Filing a Claim Against the HOA's Insurance
If you find yourself needing to file a claim against the HOA’s insurance, it’s important to follow proper steps to ensure the process runs smoothly:
Document the Incident
Collect photos, videos, or records showing the damage or incident. If possible, add reports from third parties, such as repair professionals or inspectors, noting the issue.
Notify the HOA’s Board or Management
Report the damage or concern promptly. HOAs often have a specific claims process, so ask for instructions to avoid delays.
Review the Master Policy
Work with the HOA or their insurance agent to determine if the damage falls under the master policy.
Submit the Claim
Provide all relevant evidence and paperwork to the HOA’s insurer. Be prepared to follow up regularly to check the claim status.
Consult Legal or Insurance Experts
If disputes arise or claims are denied, a professional familiar with California HOA insurance requirements can help you advocate for a resolution.
Tips for Reviewing HOA Insurance Adequacy
Relying purely on your HOA board’s due diligence can leave you at risk. Here’s how you can assess and improve your community's HOA insurance coverage:
Request Annual Updates
Review the master policy’s details in the HOA’s annual insurance disclosure. Pay close attention to coverage limits and exclusions.
Verify Natural Disaster Protection
California is prone to earthquakes and wildfires. Check whether your HOA has additional coverage for these events. If not, you may need to supplement your HO6 policy with personal earthquake or wildfire insurance.
Consider Professional Assessments
Encourage the HOA board to work with insurance brokers and legal advisors who specialize in community associations. They can evaluate whether the existing policies meet state requirements and the community’s risks.
Stay Active in HOA Meetings
Attend meetings where insurance matters are discussed. Push for regular policy reviews and insist on transparency to protect all homeowners.
Protect Your Community with Expert Guidance
Understanding the complexities of California HOA insurance is no small task, but you don’t have to face it alone.
At HOA Laws, we specialize in demystifying insurance requirements, resolving coverage disputes, and ensuring your community stays protected.
With our deep knowledge of California HOA insurance laws, we’re here to be your trusted resource every step of the way.
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