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California HOA insurance requirements: what state law and your CC&Rs require
California's Davis-Stirling Act sets a few insurance minimums for homeowners associations and ties important liability protections to carrying them. Your CC&Rs usually add more. Here is the state-law layer in one place.
Updated Oct 30, 2026 · General information with sources, not legal, insurance or engineering advice.
State-law minimums at a glance
| Coverage | 100 or fewer units | More than 100 units | Why it matters |
|---|---|---|---|
| General liability and directors and officers liability | $500,000 each | $1,000,000 each | Needed for volunteer directors' and officers' liability protection (Civil Code 5800) |
| General liability (common area owned as tenants in common) | $2,000,000 | $3,000,000 | Needed for owners' protection from tort claims over the common area (Civil Code 5805) |
| Crime, employee dishonesty or fidelity | Reserves plus 3 months of total assessments | Required unless the governing documents require more; includes computer fraud and funds transfer fraud, and the management company if one is used (Civil Code 5806) | |
Statute text checked Oct 30, 2026. Self-insurance doesn't meet the crime and fidelity requirement.
Disclosure and notice rules
- The annual budget report must summarize the property, general liability, earthquake, flood and fidelity policies, including insurer, limits and deductibles (Civil Code 5300).
- Members must be notified if a listed policy lapses or is canceled and not promptly replaced, or if there is a significant change such as lower limits or a higher deductible (Civil Code 5810).
What your CC&Rs may add
Most CC&Rs have an insurance section that goes further than state law. Common items:
- Property coverage at full replacement cost, sometimes with a stated percentage.
- What the association insures inside units (bare walls, walls-in or all-in).
- Specific liability limits, fidelity amounts, and earthquake or flood coverage.
- Who pays the deductible after a loss.
Mortgage investors and insurers such as Fannie Mae and FHA have their own condo project insurance requirements, which can matter when owners sell or refinance.
Checking your association
- Pull the insurance section of the CC&Rs.
- Pull the current declarations pages for every policy.
- Compare each requirement with each policy, line by line, including limits and deductibles.
- Compare building limits with a current estimate of rebuild cost.
- Take the open questions to the association's licensed broker.
This is general information, not legal or coverage advice. Your association's attorney and broker should confirm what applies to your association.
Quick answers
Does a California HOA need liability insurance?
State law doesn't make general liability mandatory in every case, but key protections depend on it: volunteer directors and officers are protected only if the association carries general liability and D&O at the Civil Code 5800 minimums, and owners in tenancy-in-common projects get tort protection only at the Civil Code 5805 minimums. Most CC&Rs require liability coverage too.
How much fidelity or crime coverage does a California HOA need?
At least the association's reserves plus three months of total assessments, unless the governing documents require more, including computer fraud and funds transfer fraud and the management company if one is used (Civil Code 5806).
Where can owners see the HOA's insurance?
In the insurance summary in the annual budget report (Civil Code 5300). Members must also be notified of a lapse, cancellation or significant reduction (Civil Code 5810).
For HOA boards and managers
Do this every month without the spreadsheet
The HOA insurance review checks your master policy against your CC&Rs, reserve study and current rebuild costs, and puts the gaps in a written report for your board and broker.