California Condo-Unit Owners Earthquake Insurance Policies

If your homeowners association (HOA) has earthquake insurance, it covers only the outside of the condominium buildings and the common areas. Individual condo-unit earthquake policies cover the contents inside the walls of the condo unit, not the structure itself. Building Property coverage helps you repair or replace permanently attached items such as flooring, fixtures, and windows when the inside of your condo unit is damaged by an earthquake.

Personal property coverage protects your belongings inside your condo unit. This includes furniture, clothing, and sporting goods that are damaged or destroyed in the event of an earthquake.

Loss of Use covers the cost for additional living expenses if you cannot safely occupy your home due to earthquake damage or when a civil authority prevents entry to your home because of earthquake damage. Keep in mind that you still may be paying your mortgage while in temporary rental housing. Loss of Use not only covers temporary rent but also your additional living expenses. Loss of Use coverage never has a deductible.

Loss Assessment coverage can help you pay your share of certain assessments levied by your Condo Association on its condo-unit owners. This coverage can help pay for repairs to the exterior of your condo development or certain common areas, as well as building code upgrades.

Condo units that are damaged by an earthquake may need upgraded components such as plumbing, electrical, heating and air conditioning systems to pass local and state building inspections. Rebuilding after a devastating earthquake generally must be done to current building-code standards.

Emergency and necessary repairs may be needed after an earthquake to help protect your condo unit and your family’s safety following earthquakes or aftershocks, or to prevent rain damage that may occur after a major earthquake. This could include labor and materials needed to board up damaged windows or remove broken glass.