In practice, yes. An association’s governing documents, the CC&Rs, nearly always require property and general liability coverage for the common areas, and lenders financing individual units require evidence of the master policy before they will lend. California law also addresses association insurance, and what it requires of any particular association is a legal question for the association’s counsel rather than something a summary on a website should answer. What we can speak to is the insurance side and the practical stakes: gaps or lapses in the master policy can prevent owners in the community from selling or refinancing, and can expose the association and its board members personally. We are glad to review a master policy against the CC&Rs and the lender requirements with you.
Related FAQs
It describes how far the master policy reaches into a unit. That determination guides what each owner’s HO6 policy should pick up, and we can help the board explain ...
Associations handle member funds and reserves. Crime and fidelity coverage may help protect those funds against theft or dishonesty.
Volunteer board members can face claims over governance decisions. D&O liability may help protect them and the association in those situations.
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