What is the best homeowners insurance?

What will happen if my homeowners association does not have earthquake insurance?

• I own a condominium in a complex in Utah, where we are due for a large earthquake in the next 50 years. I pay an HOA fee which covers insurance in the structure, water, and trash. I recently called our HOA accountant and she said that we do not purchase earthquake insurance. My question is this: what if a large earthquake hits and it is so powerful that our complex is destroyed? Since technically I own a small fraction of a percentage of the land here, what will happen? Do condo complexes usually rebuild even if they don't have earthquake insurance?

• Answer:

  Buy earthquake coverage for YOUR unit, add it to your condo policy. In most cases it is pretty inexpensive because you probably do not have a high limit on the dwelling coverage (additions & alterations or improvements & betterments). Also, be sure you buy the maximum loss assessment coverage on your policy that you can (most of the time this is $50,000). Loss assessment coverage covers damages that are not covered by the association's master policy & that are assessed to each unit owner. Only $1,000 of the coverage can go towards the deductible, however, if there is no coverage, there is no deductible. Other than that, if you are very concerned, you will have to go to the next association meeting & air your concerns. If you can get other owners concerned too, may be the board will at least consider getting a quote to add the coverage & then divide the cost by the number of units & divide that by 12 to see what the increase in the monthly fees would be. It may not cost as much as they think it would once the cost is divided out. Earthquake coverage normally carries a minimum deductible of 5% (at least on homeowners/condos & apts) - it could be higher for a condo master policy, that part I am not sure of. It is sure worth a try. Good luck to you.