INSURANCE COVERAGE INFORMATION (aka INSURANCE DISCLOSURE)
Once a year, most mortgage lenders require that borrowers provide them with proof that the Association has a master property, casualty, fire, and liability insurance policy in force. The requirement can be satisfied by providing them with this proof of insurance document. Note that KFHOA's current master insurance policy does not cover the following items:
Personal property and contents, e.g., furniture, clothing, electronics, collectibles, etc.
Upgrades beyond original materials, e.g., granite counters, hardwood floors, premium blinds, etc., collectively known as betterments
Loss of use, payment for relocation expenses should you have to live elsewhere while your unit it being rebuilt
If you are a landlord, lost rent if there is a fire and your tenant is displaced
If you are a tenant, your personal property and contents
Please contact your personal agent to discuss the costs and benefits of getting coverage for the items listed above and other risks that may not be covered by our master insurance policy.
Regarding earthquake insurance, although KFHOA currently does carry it (through February 25, 2025), you are at risk of a significant loss assessment should there be a damaging earthquake. Why? Because each Kentfield owner is responsible for 1/70th of the earthquake policy deductible. As is the case with your auto insurance, the deductible is your 'out of pocket' cost before insurance coverage kicks in. KFHOA's earthquake coverage has a substantial deductible -- between $1,000,000 and $2,000,000 per building -- and if there is a damaging earthquake the Association will send each owner a bill for their 1/70th share, known as an earthquake loss assessment. Read this newsletter, page 2 for examples of how the deductible is calculated and how it would be allocated to every KFHOA owner. Plus, the 2022/23 policy only provides coverage for about 50% of the anticipated rebuilding cost of the complex. Contact our property manager if you have any questions about what this means to you.
To find out more, we advise you to talk to your personal insurance agent then visit the California Earthquake Authority's website and click on Insurance Policies > Condominium > Condo Coverages & Deductibles for more information about your risks and the various products the CEA offers to cover them.