What HOA Directors Should Know When Making Decisions Not to Have Earthquake Insurance

The recent 7.0 earthquake in Alaska has brought to light the importance of homeowners associations having proper insurance coverage when a catastrophic event occurs. Unfortunately, it is often not until after the catastrophic event occurs and the losses become realities, when those affected by the lack of having insurance coverage for the event (i.e. earthquake or flood insurance) learn the ramifications of decisions that were made not to spend the money for the insurance coverage.  Such a scenario is now playing out in the River’s Edge Condos located on the northern bank of Eagle River in Anchorage Alaska, where the 7.0 earthquake that struck on November 30th has caused considerable damage and left properties uninhabitable. (See Sean Maguire, December 10, 2018, article entitled, “Homeowner Association didn’t have quake insurance, residents of condemned Eagle River condos say”).