Yes. California law gives HOAs strong reasons to carry insurance. Under the Davis-Stirling Act (Civil Code Sections 5800 and 5805), volunteer directors and officers and individual homeowners only get certain protections from personal liability if the association carries minimum levels of general liability and directors and officers coverage, and Civil Code Section 5300 requires the association to disclose a summary of its insurance to members each year. Additionally, virtually all HOA governing documents (CC&Rs) contain their own insurance requirements that may exceed the statutory minimums.
Beyond legal requirements, lenders financing homes in HOA communities require evidence of proper master policy coverage — gaps or lapses can prevent homeowners in your community from selling or refinancing, creating significant board liability. Operating without adequate insurance also exposes the association and individual board members to personal financial liability.
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