Voting for Earthquake Insurance

The failure to purchase earthquake insurance or flood insurance can result in a catastrophe for a homeowner association and the individual homeowners and renters, but it is expensive to purchase.

Many boards ask the members of their association to vote on whether to pay for earthquake and flood insurance.

Following is sample language found in some CC&Rs that is intended to protect the board against claims by members.

Earthquake and Flood Insurance. The Association shall obtain earthquake and flood insurance if these types of insurance are available. Should the Board decide it does not want to obtain earthquake or flood insurance, the Board must obtain the approval of at least sixty percent (60%) of the voting power of the Association to waive either coverage. Any waiver must take place annually by means of a vote of the Membership by secret ballot utilizing the same rules as for voting for Directors.

Homeowner associations should have their legal counsel draft appropriate language to amend their association's CC&Rs if needed for desired.

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