Glossary of HOA Insurance Terms


Items that are permanently attached to floors, ceilings, and walls, such as cabinets and lighting fixtures.

Gross Negligence

The failure to perform a duty with reckless disregard for the consequences affecting the health, life or property of another person.


A factor that increases the likelihood or probable severity of a loss. For example, storing gasoline in a garage is a hazard that increases the probability and probable severity of a loss.

Hold Harmless Clause

A provision in a contract by which one party agrees to assume the liabilities of the other party.


The agreement by one party to protect another party against a loss, or compensation given to other party after a loss is sustained.

Insurable Interest

An interest in property such that a loss or destruction of the property would cause a financial loss.

Insurance Clause – CC&Rs

This section of the CC&Rs sets forth any requirements the association must follow in purchasing insurance coverage.

Insurance Disclosure Form

This is the form that must be provided to all unit owners on an annual basis in accordance with California law.


A person or entity covered by an insurance policy, including the "named insured" and any other parties for whom protection is provided under the policy.

Interior Betterments

These are the property components located within a condominium unit. Examples of interior betterments include wall and floor coverings, kitchen cabinets, and fixtures. Interior betterments are sometimes not covered by HOA master policies.