Earthquake damage generally isn’t part of a normal HOA master policy. A board that wants it buys a separate policy, and in California the association has to list that policy, with its limit and deductible, in the annual budget report every owner receives. If adding the premium would raise regular assessments more than 20 percent over the prior year, the board needs approval from a majority of a quorum of members. A master quake policy usually comes with a percentage deductible and may carry a limit below the full rebuild cost. The alternative is for owners to buy CEA condo-unit policies with Loss Assessment coverage, which tops out at $100,000. The age and construction of the buildings weigh heavily on the choice.
Is earthquake already in the master policy?
Usually not. The California Department of Insurance tells consumers that homeowners, renters and condo policies don’t cover earthquake damage, and that an HOA’s insurance for common areas and the building exterior may not cover earthquake damage to them either. Earthquake is bought as its own policy. When an association does carry one, the California Earthquake Authority notes it covers only the outside of the buildings and the common areas, not the inside of anyone’s unit, their belongings or their living expenses if they can’t stay there.
So the question isn’t whether the master policy already has it. It’s whether the association adds a separate earthquake policy, leaves the risk to owners, or both. How the master policy and an owner’s HO-6 split the building and the rest of what an HOA carries.
What the board has to tell owners
Civil Code Section 5300 requires the association to distribute an annual budget report 30 to 90 days before the end of its fiscal year. That report must include a summary of the association’s property, general liability, earthquake, flood and fidelity policies, listing for each one the name of the insurer, the type of insurance, the policy limit and the deductible, if any.
Section 5300 orders a summary, not a purchase. But it means every owner sees, once a year, whether a quake policy is on the list and how big its deductible is. The summary has to carry a boldface notice that it is not a substitute for the actual policies and that owners should consult their own broker or agent about additional coverage. If no earthquake policy shows up, that is your cue to look at your own.
Can the board buy it without a vote?
Start with your CC&Rs and bylaws, which may say something about insurance. On the money side, Civil Code Section 5605 says that, notwithstanding more restrictive limits in the governing documents, the board may not raise the regular assessment more than 20 percent over the prior fiscal year, or levy special assessments that together exceed 5 percent of the year’s budgeted gross expenses, without approval of a majority of a quorum of members at a meeting or election. A quorum there means more than 50 percent of the members.
Section 5610 says those limits don’t apply to emergencies, but the emergencies it lists are extraordinary expenses: ones a court orders, ones needed when a threat to personal health or safety, or another hazardous condition, is discovered, and repairs the board could not reasonably have foreseen when it prepared the budget, which take a board resolution with written findings. Adding a new premium is a planned budget decision, so if it pushes the assessment past the cap, expect to take it to the owners.
How a master earthquake policy is built
Two features drive most board discussions. First, the deductible. An HOA earthquake deductible is usually a percentage rather than a flat dollar amount, and it is based on the replacement cost of each damaged building, not the whole complex. A modest percentage of a multi-million-dollar building is a very large number, and the association has to fund that share itself or through a special assessment.
Second, the limit. To keep the premium down, associations commonly buy a limit below the full replacement value of the complex, called a stop-loss limit. That limit is the most the insurer will pay no matter how much damage occurs. When I review a master quake quote with a board, the first things I put side by side are the deductible in dollars per building and the gap between the limit and what it would actually cost to rebuild.
The other route: owners insure their share
An owner who has a condo-unit policy with a CEA participating insurer can buy a CEA condo-unit earthquake policy. Its coverages include Building Property for interior items the owner is responsible for, such as cabinets and built-in appliances; Personal Property; Loss of Use, which has no deductible; and Loss Assessment.
- Loss Assessment is designed to pay the owner’s share of certain assessments the association imposes to repair earthquake damage, or the owner’s share of a master earthquake policy deductible.
- Limits are $25,000, $50,000, $75,000 or $100,000. The $25,000 option is available only if the unit’s fair market value is $135,000 or less.
- Deductibles are 5, 10, 15, 20 or 25 percent of the Loss Assessment limit.
That cap matters. If the association has no quake policy, an owner’s share of rebuilding a damaged building can run well past $100,000. If it does, compare your Loss Assessment limit with your share of the master deductible. How loss assessment coverage works and condo insurance for owners.
Older and soft-story buildings
Los Angeles’s mandatory program under Ordinances 183893 and 184081 targets wood-frame buildings of two or more stories, built under codes enacted before January 1, 1978, with ground-floor parking or similar open floor space; it doesn’t apply to residential buildings with three or fewer units, and condominiums are included in a later priority group. Oakland’s program under Ordinance 13516 targets residential soft-story buildings built before 1991 with large ground-floor openings.
If your building fits one of those descriptions, have the retrofit permits and engineering records ready. The California Department of Insurance lists type of construction among the factors behind an earthquake premium and says older homes cost more to insure, so expect an underwriter to ask about year built, construction and retrofit work. Those records also tell the board how exposed the association is. Earthquake insurance in Los Angeles, in Oakland and statewide.
Common questions
Does our HOA master policy cover earthquakes?
Generally no. Earthquake is bought as a separate policy, and California’s annual budget report has to list any earthquake policy the association carries, with its limit and deductible.
Do owners have to vote to add earthquake insurance?
Check your governing documents first. Under Civil Code 5605, the board needs approval from a majority of a quorum of members to raise regular assessments more than 20 percent over the prior year or to levy special assessments above 5 percent of budgeted gross expenses.
Will loss assessment coverage pay my share of the HOA’s earthquake deductible?
A CEA condo-unit policy’s Loss Assessment coverage is designed to pay your share of a master earthquake policy deductible or of certain assessments for earthquake repairs, up to the limit you choose, after its own deductible.
What’s the most loss assessment coverage I can buy from the CEA?
$100,000. The other limits are $25,000, $50,000 and $75,000, and the $25,000 option is available only on units with a fair market value of $135,000 or less.
Does the HOA’s earthquake policy cover the inside of my unit?
No. The CEA notes an HOA earthquake policy covers only the building exteriors and common areas, so interior items, belongings and extra living expenses are left to your own condo-unit earthquake policy, if you buy one.
Sources
- California Civil Code Section 5300: annual budget report and insurance summary
- California Civil Code Section 5605: limits on assessment increases
- California Civil Code Section 5610: emergency exceptions to the assessment limits
- California Department of Insurance: earthquake insurance consumer guide
- California Earthquake Authority: condo-unit earthquake insurance
- California Earthquake Authority: condo-unit coverages and deductibles
- California Earthquake Authority: earthquake insurance for condo unit owners (brochure)
- ECHO (Educational Community for Homeowners): cost of earthquake insurance for HOAs in California
- Los Angeles Department of Building and Safety: soft-story retrofit program (Ordinances 183893 and 184081)
- City of Oakland: mandatory soft-story retrofit program
General information about earthquake insurance for California homeowners associations as of October 2026, not legal or tax advice; the California Civil Code, your association’s governing documents and the actual policy terms control. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.