Adams Stirling PLC


Distribute a Summary. As required by Civil Code § 5300(b)(9), associations are required to annually distribute not less than 30 days nor more than 90 days preceding the beginning of the association's fiscal year a summary of the association's property, general liability, and earthquake and flood and fidelity insurance policies, that includes all of the following information about each policy:
1.  Name of the insurer
2.  Type of insurance
3.  Policy limits
4.  Amount of deductible, if any

Notice of Changes. The association shall, as soon as reasonably practicable, notify its members by first-class mail if any of the policies have lapsed, been canceled, and are not immediately renewed, restored, or replaced, or if there is a significant change, such as a reduction in coverage or limits or an increase in the deductible, as to any of those policies. If the association receives any notice of nonrenewal of a policy and if replacement coverage will not be in effect by the date the existing coverage lapses, the association must immediately notify its members. (Civ. Code § 5810.)

Required Language. The summary of insurance distributed to the membership must contain, in at least 10-point boldface type, the statement found in Civil Code § 5300(b)(9).

Records Inspection. Insurance policies should be made available for inspection and copying. Although insurance policies are not mentioned in the inspection provisions of the Davis-Stirling Act, they likely fall under the category of executed contracts not otherwise privileged under law. (Civ. Code § 5200(a)(4).)

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC