From Los Angeles Business Journal · staff-author · · 1m
HOAs Pay More for Less Coverage
L.A. HOAs face higher premiums as earthquake insurance deductibles surge to 25% of building value.
In brief
L.A. HOAs face higher premiums as earthquake insurance deductibles surge to 25% of building value. L.A. homeowners associations pay more for less earthquake insurance coverage as deductibles rise to 25% of building value. Originally reported by Los Angeles Business Journal.
Earthquake insurance deductibles rise
Earthquake deductibles on L.A. HOA policies surged to 25% of building value between 2024 and 2026.
“Associations are paying more for insurance that covers less”
Deductible increases accelerate
More than half of earthquake deductibles on policies issued between 2024 and 2026 sit at more than 25% of building value.
Insurance companies pull back
Insurance companies are pulling back from risk they once absorbed themselves.
Higher premiums for HOAs
One association’s annual premium rose from $6,637 in 2019 to $21,599 by 2026.
New exclusions added
38 instances in which a renewing policy came back with a newly added exclusion.
Earthquake coverage shrinks
Earthquake deductibles rose from 10% of building value in 2016 to 25% by 2025.
What it means
L.A. homeowners associations pay more for less earthquake insurance coverage as deductibles rise to 25% of building value.
