An association is required to disclose and summarize information regarding the association’s insurance policies as part of the association’s annual budget report that is distributed to the association’s members. (See “Insurance Disclosures.”) When any of the policies lapse, are changed, are cancelled and are not immediately renewed, Civil Code Section 5810 requires the association to provide notice of the same to its members:
“The association shall, as soon as reasonably practicable, provide individual notice pursuant to Section 4040 to all members if any of the policies described in the annual budget report pursuant to Section 5300 have lapsed, been canceled, and are not immediately renewed, restored, or replaced, or if there is a significant change, such as a reduction in coverage or limits or an increase in the deductible, as to any of those policies. If the association receives any notice of nonrenewal of a policy described in the annual budget report pursuant to Section 5300, the association shall immediately notify its members if replacement coverage will not be in effect by the date the existing coverage will lapse.” (Civ. Code § 5810.)
