Double homeowners coverage GLENN asked 2 months ago
Double homeowners coverage

We live in an HOA in Ventura County, CA. Last year, Farmers dropped us and our HOA insurance increased astronomically (17 fold). Homeowners are now paying a $7600 assessment, but we still only have about 40% of the coverage we need. I changed our State Farm homeowners from a condo (walls in) policy to a full “house owner” policy. My agent knows all the details, and assures me they will cover whatever the HOA insurance doesn’t, up to the policy limit. Other homeowners or their agents have expressed skepticism that a second homeowners policy like that would pay out. Do we need to worry that our State Farm coverage isn’t legitimate?


3 Answers
Karl Susman Karl Susman Expert answered 2 months ago

One of my favorite sayings is to never give an insurer a good excuse to deny a claim. Writing a homeowners insurance policy form for a condominium owners policy is just begging for any potential claim to not be paid. As you have accurately said, you had a condo policy and now have a homeowners insurance policy. They are entirely different policy forms, cover totally different things and triggers for coverage differ. I wouldn’t worry about IF the coverage you now have as a homeowners insurance policy is legitimate, I would say by your own logic, it clearly is illegitimate. Not sure how many ways to say it, and I’m not trying to be flippant; Condo insurance policies are written for condominium owners and homeowners insurance policies are written for, wait for it, homeowners. The best coverage you likely now have is if you have it in writing from your State Farm agent that the policy will cover you in the event of a loss, is a decent E&O claim against the agent.

Sorry ☹

Karl Susman

Joel Gumbiner Joel Gumbiner Expert answered 1 month ago

Dear Glenn,

The answer to the question about what is covered would require a review of both policies—HOA and unit policy. Feel free to reach out if I can be helpful.

Joel Gumbiner

Sandra L. Moriarty Sandra L. Moriarty Expert answered 2 weeks ago
I agree with Joel – a review of both policies would be needed to answer the question.  I would recommend you get written confirmation from the agent in the meantime, in case something happens.
One thing you might be able to do is hold a vote, change the CCR’s, make the unit owners responsible for more of the structure and then have the unit owners buy HO-6 policies with increased Coverage A limits to cover the increased exposure.  That would definitely require a good HOA attorney, however.