Glossary of HOA Insurance Terms


The amount that an insured agrees to pay toward the total amount of an insured loss.

Directors and Officers Liability (D&O)

Insures directors and officers for negligent acts or omissions, misleading statements which result in lawsuits, including allegations of mismanagement.

DOI – Department of Insurance

The department of California’s government that regulates insurance companies that do business in California.

Earthquake Zone

An area that is designated as the zone most likely to be affected if an earthquake occurs along a fault located within the zone. There are many earthquake zones in California.

Employment Practices Liability

Insurance coverage that provides an employer a legal defense against lawsuits filed by employees alleging wrongful discharge, discrimination, sexual harassment, and similar claims.


A written change to the policy that modifies the coverage.


Items or conditions that are not covered by the general insurance contract.

Extended Replacement Cost

This option includes inflation protection coverage.