Accidents happen regardless of how well you prepare or what you expect. Therefore, you need insurance that helps you handle those incidents with fewer headaches and less stress. HOA insurance is one of the ways to protect against liabilities, property damage, and other unexpected situations. Below, the professionals from Altra Insurance Services, a premier provider of home insurance San Diego residents trust for exceptional knowledge and service, explain some requirements for HOA insurance in California, its benefits, and more.
You should be insured for at least the value listed on your governing documents in California. This is generally the total replacement cost. There are industry programs available to help you calculate building values to ensure you make the right choices when it comes to insurance. The calculations for property value are typically based on accurate research, such as determining the square footage of the homes or condos in your HOA.
The ordinances likely to be relevant when filing a claim include contingent liability, which also handles undamaged portions of the property. Another type of coverage is demolition, but keep in mind that in California, demolition costs can be expensive when heavy machinery is needed, so make sure this component is part of full coverage in your policy. The third type of coverage is the increased cost of construction, which is associated with building code updates determined by local ordinances and increased construction expenses. Miscellaneous insurance coverage could also exist, and if it does, the policy typically covers what the name states.
Inside the Governing Documents
These documents list the main requirements, ranging from short-term rental restrictions to trash and recycling rules. As a property owner, you’ll need to understand and agree to the bylaws stated in the HOA governing documents and follow them correctly. Failing to comply with maintenance standards for the home, color patterns, pet size and number limits, and other requirements could lead to serious consequences that are avoidable.
Increases Each Year
An association can increase HOA insurance rates yearly if legal requirements are met. For example, the increase can be up to 20 percent, although boards typically don’t go this high. A majority of quorum members would need to approve anything higher than this amount. At the same time, homeowners can try to oust an HOA in California, which comes with legal and practical steps many individuals fail to consider. Therefore, it’s best to know as much about the insurance as possible, whether you’re an association or a homeowner.
Contact an Insurance Provider
While the information you need can be found in the Davis-Stirling Common Interest Development Act of California, having professionals on your side is best. By turning to an insurance company for advice and detailed information, you can avoid making purchases that don’t help you and your family. These individuals are updated on new California laws and HOA elections or changes, so they can help you stay current. A provider should review documents and explain the requirements to protect your home or association.
For reliable, affordable homeowners insurance, San Diego residents know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and car insurance. Request a free quote by calling one of our friendly agents today at (619) 474-6666.