The insurance coverage for Association buildings is $59,319,900.00 with a ten thousand dollar ($10,000) per homeowner deductible per occurrence (TO BE PAID BY HOMEOWNER). If there is an occurrence with water damage to only one unit, then the deductible for that unit is $10,000. If the occurrence causes water damage to four units, then each unit is only responsible to pay a $2,500 deductible. This example would be considered one occurrence. Homeowners are responsible to carry an HO6 insurance policy to maintain coverage for their personal possessions and their interior for items not covered by the Association master insurance policy. Homeowners are encouraged to speak with their own insurance agent on securing the proper insurance coverage for their property.

In the event of fire damage, HOA insurance covers the building structure, interior walls, all built-in appliances, window and floor coverings. Non built-ins such as washing machines, dryers, and refrigerators are NOT included. The master insurance policy carries building code upgrade coverage.

If a homeowner has upgraded to expensive counter tops, flooring, or kitchen cabinets for example, homeowners should be aware that their personal insurance (HO-6) policy should be written to cover these upgrades. In the event of a fire, the master policy would replace with like, same and kind as originally built.

NOTE: This is a brief summary of insurance coverage for association members for purposes of satisfying the requirement of CA Senate Bill #5125. For complete coverages and exclusions, please refer to the original policies, declarations and endorsements.