HOA Insurance Coverage (via CA FAIR Plan)

[Chuck Spellman]

Hi all! I'm new to this group, but have owned a condo at The Met for about 20 years.

Like many of you that own property at The Met, I only recently found out (at the October HOA meeting) that the complex is currently insured -- via the CA FAIR Plan (a so-called
"insurer of last resort").  

If I understood correctly, the current HOA policy amount is $10 million -- whereas the insurance policy needed for the entire complex is a significantly higher amount --- around $280 to $300 million.

I'm trying to determine if it would be advisable to purchase a supplemental fire policy.  

Has anyone else has already looked into options for a supplemental fire policy (to "backstop" the current HOA policy)?

Any assistance from the community would be greatly appreciated!

Thank you.

[Todd Riley |818.538.6331|TheMetatWarnerCenter.com]

Current Coverage is $10,000,000 and has been for about a year and a half now.  The previous coverage was around $800,000,000.

 

In addition to the coverage going down, the rates went up for the coverage and was the major driver for the HOA special Assessments in the same period.

 

The HOA and the Insurance Carrier also increased the Loss Deductible per unit was raised from $25,000 to $50,000 per unit.  You can insure for this via your condo insurance coverage.

 Todd Riley | Equity Union Real Estate | 818.538.6331 | https://themetatwarnercenter.com 

[Chuck Spellman]

Thanks Todd.  Very nice speaking with you today.  Appreciate all the information you shared with me.

[Todd Riley |818.538.6331|TheMetatWarnerCenter.com]

My pleasure