Short answer: Every California HOA must send owners an annual summary of its property, general liability, earthquake, flood and fidelity insurance, listing the insurer, policy limit and deductible for each (Civil Code §5300(b)(9)). The required notice warns that the association's policies may not cover your unit's contents or improvements, and that you may owe part of a deductible.
What the summary must include
| Item | Required for each policy |
|---|---|
| Name of the insurer | Yes |
| Type of insurance | Property, general liability, earthquake, flood, fidelity |
| Policy limit | Yes |
| Deductible | Yes, if any |
Source: Civil Code §5300(b)(9). It comes with the annual budget report, which must be distributed 30 to 90 days before the end of the association's fiscal year (§5300(a)). The association can meet the requirement by sending copies of the declarations pages.
The required warning
The summary must contain, in at least 10-point bold type, a statement that it isn't a substitute for the full policies, that any member may review the policies and get copies, and that the association's insurance "may not cover your property, including personal property or real property improvements to or around your dwelling." It also warns you may be responsible for all or part of a deductible.
How to use it
- Find the master-policy deductible and set your HO-6 loss-assessment coverage with it in mind.
- Check whether the HOA carries earthquake or flood coverage. If it doesn't, ask about your own options.
- Check what the master policy treats as the unit versus your improvements, then size your HO-6 dwelling coverage.
- Request the full policies if anything is unclear. §5300 gives you that right.
Related: HOA master policy vs. condo HO-6 in California and should an HOA buy earthquake insurance.
Frequently asked questions
What insurance must a California HOA disclose to owners?
Its property, general liability, earthquake, flood and fidelity policies, with the insurer, type, limit and deductible of each, in the annual budget report (Civil Code §5300(b)(9)).
When does my HOA have to send the insurance summary?
With the annual budget report, 30 to 90 days before the end of the association's fiscal year.
Can I see the HOA's actual insurance policies?
Yes. The required notice says any member may review the policies on reasonable notice and get copies by paying reasonable duplication charges.
Does the HOA master policy cover my unit?
Possibly not all of it. The statutory warning says the association's policies may not cover your personal property or improvements, which is why owners carry an HO-6.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.