Action required: The HOA requires proof of $100,000 loss assessment coverage submitted to CWD management prior to occupancy. State Farm's maximum is $50K — a different carrier is needed.
Note: Earthquake loss assessment is not covered by standard HO-6 policies. Ask your agent about adding it as an optional rider.
Contact for compliant HO-6 guidance: Kim Ward · HUB International NW · (800) 598-1030 · kimberly.ward@hubinternational.com
$100K
Loss assessment coverage required by HOA before occupancy
$50K
State Farm maximum — does NOT meet the requirement
$50K
HOA master policy deductible (typical perils) — owner may be liable
$100K
HOA water damage deductible — owner may be liable
5%
HOA earthquake deductible of rateable limit — potentially very large
Certificate of Insurance — HUB International Certificate of Insurance.pdf · 2025-2026 · Mar 14 Docset From Paul
What Loss Assessment Covers
"This policy extension covers assessments made against you and all other owners by the Association for covered property or liability losses. It can also cover assessments made against only your unit."
In plain terms: if the HOA is hit with a large claim that exceeds its master policy (or falls within the deductible), the shortfall is split across all unit owners as a special assessment. Your loss assessment coverage pays your share.
Source: Certificate of Insurance.pdf · Page 3 — 2025-2026 Residential Unit Owner's Insurance Considerations
Minimum Coverage Recommended
"We would recommend you carry, at minimum, $100,000 in loss assessment coverage."
This is the HOA's own insurer (HUB International) making the recommendation — it matches the occupancy requirement exactly.
Source: Certificate of Insurance.pdf · Page 3
Earthquake Loss Assessment — Not Covered by Default
"Assessments for Earthquake damage is not covered, however some carriers offer it. Contact your agent to discuss how your policy will respond and what options are available."
The HOA carries a 5% earthquake deductible on a $29.8M policy — that's up to ~$1.49M split among 43 units (~$34,700/unit). Standard loss assessment coverage would NOT cover this. Ask specifically about an Earthquake Loss Assessment rider.
Source: Certificate of Insurance.pdf · Page 3
Coverage A — Deductible Responsibility
"You should carry coverage in the amount of at least $100,000 — the Association's deductible for which you may be responsible."
This is separate from loss assessment. Coverage A (Dwelling) on your HO-6 should also be at least $100K to cover your potential responsibility for the master policy's standard deductible.
Source: Certificate of Insurance.pdf · Page 3
Disclosure / Resale Report — CWD Group Disclosure Resale Report.pdf · Nov 19, 2025 · Mar 14 Docset From Paul
Occupancy Requirement — Stated Twice
The following note appears on both page 4 (Notes about this home/unit) and page 8 (Insurance Notes):
"Owners required to show proof of $100K loss assessment coverage to management company prior to occupancy. See 2025-2026 Insurance 'Cheat Sheet' for Recommended Policy Coverage details."
This is a hard requirement enforced by CWD — not just a recommendation. Proof must be submitted before move-in.
Source: Disclosure Resale Report.pdf · Pages 4 and 8
HOA Master Policy at a Glance
CoverageLimitDeductible
Property (all-in, walls-in)$33,200,000$50,000 blanket
Water DamageIncluded above$100,000 per occurrence
Earthquake$29,800,0005% of rateable limit
Flood$10,000,000$100,000
General Liability$1M / $2M aggregate$1,000
Umbrella$25,000,000None (SIR)
Directors & Officers$1,000,000$1,000
Fidelity / Crime$1,400,000$10,000
Source: Disclosure Resale Report.pdf · Pages 7–8
Issue #10 Status — State Farm Cannot Meet Requirement
Current Problem
Chris Case (State Farm agent) confirmed: "State Farm has a limit of $50,000 for loss assessment. I can't go higher than that."

State Farm's $50K cap is half the $100K required by the HOA. A different carrier or policy is needed before CWD will authorize occupancy.
Next Steps
  1. Call HUB International — Kim Ward at (800) 598-1030 or kimberly.ward@hubinternational.com. They issue the HOA's COI and know exactly what compliant HO-6 policies look like.
  2. Ask specifically for $100K loss assessment AND optional Earthquake Loss Assessment rider.
  3. Submit proof of coverage to CWD: continentalhouse@cwdgroup.com or fax (206) 706-7679.
Source Documents
DocumentDateLocationLoss Assessment Content
Certificate of Insurance.pdf Apr 30, 2025 Mar 14 Docset From Paul\ Full definition of loss assessment; $100K recommendation; earthquake exclusion; Coverage A guidance
Disclosure Resale Report.pdf Nov 19, 2025 Mar 14 Docset From Paul\ $100K requirement stated twice; full HOA master policy coverage table; insurance broker contact