There is no law requiring associations to purchase earthquake insurance. The only obligation to carry such insurance might be found in the association's governing documents. If no such obligation exists, boards have the authority to discontinue earthquake insurance.
However, if a board were to cancel the association's earthquake insurance and a major earthquake occurred after the cancellation, lawsuits would likely result. The safer approach is to put the matter to a vote of the membership. If the membership votes to cancel (or not renew) the policy, litigation is less likely.
Notice of Change
. In the event any changes are made in the association's insurance (cancellation, non-renewal, changes in deductibles, etc.), the board must immediately notify the membership. (Civ. Code §5810
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