Board Authority. Absent any obligation in the governing document to maintain earthquake insurance, boards can purchase and renew earthquake insurance on their own without membership approval, provided the premiums are within the association's budget limitations (20% increase for regular dues or 5% for special assessments). If the premiums require an increase above these limitations, boards need membership approval. Boards also have the authority to discontinue earthquake insurance but should seek membership approval before doing so.

Commercial Policies. Earthquake insurance for associations is available through commercial carriers such as Farmers and State Farm. To help make the premiums affordable, associations must balance the amount of coverage with deductibles. The higher the deductible, the lower the premium.

Owner Insurance. In addition to any insurance purchased by the association, owners may purchase their own residential policy through the California Earthquake Authority.