Homeowners Associations and Earthquake Insurance

We had our annual HOA meeting at the Sunset Oaks townhouse development in Sunnyvale on Wednesday night. I've lived here for nearly 20 years, and the subject of earthquake insurance comes up every year. For a long time, we paid to have this coverage, and watched as the rates went up and the deductible got larger. Two years ago, the board assessed each homeowner over $200 to continue our earthquake insurance while keeping the monthly dues from rising precipitously. Last year, we finally voted to drop it. But on Wednesday, the subject came up again...after all, this is Northern California. Mark Shade, of N.A. Shade and Associates, who manages our accounting, told us that of the more than a hundred condo developments he represents, less than 25% still had earthquake coverage, and that half of those associations are dropping it. Coverage for a single family residence is expensive, but still possible. For a multi-million dollar development, that time is passing. We hold our breaths and hope for the best.