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Los Angeles County: How to Buy a Condo or Townhome When HOA Insurance Is Rising (November 2026)
How to buy a Los Angeles County condo or townhome as HOA insurance rises: read the master policy, deductibles and reserves, price the full cost, then negotiate.
If you are shopping for a condo or townhome in Los Angeles County, the sticker price is only part of the bill. Your HOA's master insurance policy is the other half, and recent local reporting shows those policies are getting more expensive while covering less. That can push monthly dues up, trigger special assessments after a claim, and even slow or stop a loan. Here is what is in the news:
- HOAs are paying more for less coverage. The Los Angeles Business Journal reported on October 12, 2026 on a Coverwatch and Assembly HOA review of policies held by 67 Los Angeles-area homeowners and condo associations. Deductibles climbed at renewal over the past two years while coverage shrank, and the sharpest shift in L.A. was on earthquake coverage. Coverwatch's own October 15 release said the study covered more than five years of renewals and about 3,000 units.
- Earthquake deductibles jumped into a new band. Per the Business Journal's write-up of the report, the median earthquake deductible in L.A. rose from 10% of building value in 2016 to 25% by 2025. Of 88 earthquake deductibles on policies issued between 2024 and 2026, 45 covered only 25% to 30% of building value, a band the report said did not appear in any policy document two years earlier. More than half of those recent earthquake deductibles sat above 25% of insured value.
- Premiums and exclusions are moving the wrong way. Among 41 same-carrier renewals since 2021, 28 carried a higher premium, 12 were flat and one declined. One association's annual premium rose from $6,637 in 2019 to $21,599 by 2026; another's climbed from $46,613 in 2021 to $133,396 in 2026. The report also documented 38 renewals that added a new exclusion (earthquake, water damage, mold, abuse claims, or PFAS "forever chemicals"), with zero cases of an excluded risk being put back later. Coverwatch said PFAS exclusions, rare before 2024, showed up in about 30% of the HOA renewals it evaluated by 2026.
- A Sacramento bill that would have capped dues increases died for this session. Sen. Caroline Menjivar's bill would have cut the threshold for raising regular assessments without a membership vote from 20% a year to 8%. It never got an Assembly hearing and is dead for this legislative session, so the existing Davis-Stirling rules still apply while insurance costs keep climbing.
A condo can still be the right buy. You just need to read the insurance and reserve papers the same way you read the inspection. Below is how to do that in Los Angeles County, step by step, with the market numbers and payment math.
The market snapshot (September 2026, Realtor.com)
Realtor.com's October 2026 county figures had not been released as of November 5, so September 2026 is the latest month.
| Measure (Los Angeles County) | September 2026 | Change vs. Sep 2025 |
|---|---|---|
| Median listing price | $950,000 | −4.5% |
| Active listings | 15,374 | +4.1% |
| New listings | 5,670 | −3.6% |
| Median days on market | 56 | −1.8% |
| Price-cut share (Realtor.com price_reduced_share) | 15.9% | +1.2 points |
| Pending listings | 4,984 | −8.6% |
| Median listing price per square foot | $620 | −2.8% |
Source: Realtor.com Residential Data, county inventory core metrics, September 2026 (also published by FRED as series MEDLISPRI6037, ACTLISCOU6037, NEWLISCOU6037, MEDDAYONMAR6037, PENLISCOU6037 and MEDLISPRIPERSQUFEE6037). The price-cut share is Realtor.com's own price_reduced_share (about 15.85% in the county file, shown here as 15.9%).
More homes for sale and fewer signed contracts than a year ago give you time to order the HOA packet, read the master policy, and walk away if the insurance or reserves do not add up. Roughly one listing in six already had a price cut in September.
Where condo and townhome buyers are looking: a ZIP-code look
These ZIP medians mix houses, condos and townhomes. They are still useful for pricing the neighborhoods where many L.A. County buyers shop for attached housing. Culver City (90230), downtown Long Beach (90802), downtown Los Angeles (90014, 90017, 90015), West L.A. (90025), Playa Vista (90094) and Marina del Rey (90292) are common condo and townhome hunting grounds.
| ZIP (area) | Median listing price | Change vs. Sep 2025 | Active listings | Median days on market | Price-cut share |
|---|---|---|---|---|---|
| 90014 (Downtown L.A.) | $469,000 | −21.7% | 20 | 127 | 27.7% |
| 90802 (Long Beach downtown) | $491,250 | −9.2% | 165 | 65 | 24.9% |
| 90017 (Downtown L.A.) | $570,750 | −1.5% | 91 | 71 | 14.8% |
| 90015 (Downtown L.A.) | $696,000 | +8.0% | 101 | 83 | 15.7% |
| 90230 (Culver City) | $717,000 | −3.1% | 96 | 41 | 23.5% |
| 91601 (North Hollywood) | $799,250 | −21.5% | 45 | 41 | 8.7% |
| 91101 (Pasadena) | $849,000 | −14.9% | 70 | 74 | 11.3% |
| 90025 (West L.A. / Sawtelle) | $1,106,250 | +0.7% | 93 | 58 | 19.5% |
| 90094 (Playa Vista) | $1,243,750 | −3.3% | 40 | 50 | 16.7% |
| 90292 (Marina del Rey) | $1,363,250 | +2.9% | 139 | 60 | 12.9% |
| 90024 (Westwood) | $1,349,500 | −7.6% | 145 | 63 | 12.7% |
| 90069 (West Hollywood) | $2,073,944 | +21.2% | 259 | 58 | 11.0% |
Source: Realtor.com Residential Data, ZIP inventory core metrics, September 2026. Price-cut shares are Realtor.com's own price_reduced_share. ZIP figures are based on small numbers of listings and swing a lot from month to month; a median listing price is an asking price, not a sale price, and it reflects the mix of homes on the market that month.
Downtown and Long Beach ZIPs show longer days on market and higher price-cut shares, which often means more room to negotiate after you find a problem in the HOA documents. Culver City's 90230 median sits well below the county's $950,000, partly because attached housing makes up more of what is listed there.
Why HOA insurance matters to your monthly payment
In a typical California condo, the association carries a master policy on the building and common areas. You carry an HO-6 (walls-in) policy for your unit's interior, personal property and loss of use. When the master policy's premium rises, the board usually raises regular assessments to pay for it. When the deductible is a large share of the building's insured value, a quake, water or fire claim can leave the association short, and the shortfall often becomes a special assessment split among the owners.
A simple example. Suppose a building is insured for $40 million and the earthquake deductible is 25% of that value. The association is on the hook for the first $10 million of quake damage before insurance pays. Split across 120 units, that is about $83,000 per unit if the loss hits the full deductible and reserves cannot cover it. On an $20 million building with 80 units and the same 25% deductible, the per-unit share of a full-deductible loss is about $62,500. Those are illustrations, not predictions, but they show why a 25% deductible is not a detail you skip.
What lenders look for. Many lenders and Fannie Mae / Freddie Mac condo guidelines want a master policy with adequate replacement coverage and will ask about high deductibles, special assessments and reserve funding. A large deductible or a pending assessment can force more cash at closing, a loan condition, or a decline. Ask your lender up front what deductible and assessment rules apply to the loan program you want.
The payment math at 7.24%
Freddie Mac's Primary Mortgage Market Survey put the average 30-year fixed rate at 7.24% for the week of October 29, 2026. Here is principal and interest with 20% down, plus a property tax estimate at California's 1% base levy only, plus sample HOA dues. Your actual tax bill will be higher once voter-approved bonds, assessments and any Mello-Roos are added, and your HOA may also bill separately for cable, trash or special projects.
| Purchase price | Down (20%) | Loan | Principal and interest | 1% base tax / mo | + $400 HOA | + $600 HOA | Income at 36% debt ratio* |
|---|---|---|---|---|---|---|---|
| $450,000 | $90,000 | $360,000 | $2,453 | $375 | $3,228 | $3,428 | $107,613 / $114,280 |
| $550,000 | $110,000 | $440,000 | $2,999 | $458 | $3,857 | $4,057 | $128,564 / $135,231 |
| $650,000 | $130,000 | $520,000 | $3,544 | $542 | $4,485 | $4,685 | $149,515 / $156,182 |
| $717,000 (90230 Culver City median) | $143,400 | $573,600 | $3,909 | $598 | $4,907 | $5,107 | $163,552 / $170,219 |
| $799,250 (91601 North Hollywood median) | $159,850 | $639,400 | $4,357 | $666 | $5,424 | $5,624 | $180,785 / $187,451 |
| $950,000 (county median) | $190,000 | $760,000 | $5,179 | $792 | $6,371 | $6,571 | $212,368 / $219,035 |
*Annual income at which the payment, tax and stated HOA dues equal 36% of gross income, with no other debts, unit insurance or special assessments. Left figure uses $400 HOA; right uses $600 HOA. Lenders' limits vary by loan program. Loans above the 2026 conforming limit are jumbo loans with their own rates and rules.
What a price cut is worth. At 7.24% with 20% down, every $10,000 off the price cuts about $68 a month from principal and interest. On a $717,000 Culver City listing, 3% off saves about $117 a month; 5% off saves about $195 a month.
What a dues increase is worth. A $100-a-month HOA increase costs about as much as $18,300 more in purchase price at this rate with 20% down (because $100 a month is about the principal and interest on a $14,700 loan). If insurance is pushing dues up $150 a month, that is like paying roughly $27,500 more for the unit. Use that trade when you negotiate.
Context from Census QuickFacts. Los Angeles County's median household income is $90,112 (2020–2024, in 2024 dollars). Median gross rent is $1,954. The median homeowner with a mortgage already pays $3,160 a month in selected owner costs. A new condo payment that lands near $4,500 to $6,500 with dues is a big step up from either figure, which is why reading the HOA budget before you offer matters.
How HOA assessments work under California law (short version)
Under the Davis-Stirling Common Interest Development Act, a board can generally increase regular assessments up to 20% above the prior fiscal year's assessments without a membership vote, and can levy special assessments up to 5% of the association's budgeted gross expenses for that year without a vote. Larger special assessments usually need membership approval, with narrow emergency exceptions. That 20% cap is why Menjivar's proposal to lower it to 8% would have collided with rising insurance premiums: boards still need a way to pay the master policy. Confirm the exact Civil Code sections and any emergency rules with a California real estate attorney; this is a summary, not legal advice.
Before close, California Civil Code section 4525 requires the seller to provide a package of association documents (or have the association provide them). That package typically includes the governing documents, the most recent financial statement, the annual budget report under section 5300 (which includes a summary of the reserve funding plan), and notices of any unpaid assessments or approved special assessments. Use Civil Code section 4528's form checklist so you know what you are owed.
How to buy a condo or townhome when HOA insurance is rising: step by step
Step 1: Decide condo vs. townhome vs. single-family on purpose. Write down why you want attached housing (price, lock-and-leave, location) and what you will not accept (high dues, pending lawsuits, a huge quake deductible with thin reserves). That list keeps you from falling for a pretty unit with a bad master policy.
Step 2: Get pre-approved on a condo-eligible loan. Tell the lender you are buying a condo or townhome in Los Angeles County and ask which project review, deductible and special-assessment rules apply. FHA, Fannie Mae, Freddie Mac and jumbo investors each have their own condo guidelines. A project that fails review wastes everyone's time.
Step 3: Ask for the HOA document package early. Do not wait until you are in escrow under a short contingency. Ask the listing agent for the Civil Code 4525 package, the current budget, the reserve study summary, the last 12 months of board minutes, the master insurance declarations page, and any notice of pending or approved special assessments. In a market with 56 median days on market and a 15.9% price-cut share, many sellers will share papers before you write an offer.
Step 4: Read the master policy declarations, not just the premium. Find: (a) the carrier and whether it is admitted or surplus lines, (b) the building's insured value, (c) the property deductible in dollars, (d) the earthquake deductible as a percent of building value, (e) water-damage and mold deductibles, (f) any new exclusions (PFAS, cyber, abuse, ordinance-or-law gaps), and (g) the renewal date. Compare this year's page to last year's if both are in the packet.
Step 5: Translate the deductible into a per-unit number. Take insured building value × deductible percent ÷ number of units. Ask whether the association has an insurance deductible funding plan or a line item in reserves for it. If a 25% quake deductible would mean $50,000-plus per unit and reserves are thin, price that risk into your offer or walk.
Step 6: Read the reserve study and the percent funded. Look for the remaining useful life and replacement cost of the roof, plumbing, elevators, waterproofing, paint and paving. A low percent-funded figure plus a big insurance deductible is a warning. Ask whether any special assessment is already approved or under discussion for insurance, repairs or litigation.
Step 7: Scan the board minutes for insurance and lawsuits. Search the last year of minutes for "insurance," "renewal," "deductible," "assessment," "leak," "mold," "lawsuit," "construction defect" and "PFAS." California's long construction-defect window is one reason directors-and-officers coverage has gotten pricier, according to the Coverwatch reporting. Pending litigation can affect both dues and loan approval.
Step 8: Price the full monthly cost before you offer. Add principal and interest, property tax, HOA dues, your HO-6 premium, any parking or storage fee, and a cushion for a future dues increase. Compare that total with rent in the same ZIP. Realtor.com's Q3 2026 Los Angeles rental report put the county's median asking rent at $2,554 (down 3.6% year over year), with 0–2 bedroom units at $2,239 and 3+ bedroom units at $3,571. Buying still costs far more per month than renting for most households; make sure the condo's dues story does not widen that gap further.
Step 9: Get your own HO-6 quote before removing contingencies. Some unit policies now exclude or limit water damage, and some carriers want to see the master policy first. A unit that is hard to insure is hard to buy and hard to sell.
Step 10: Negotiate with the insurance and reserve facts. If the deductible is high, reserves are low, or a special assessment is coming, ask for a price cut, a seller credit toward closing costs or dues, or a holdback. At 7.24%, every $10,000 off the price saves about $68 a month in P&I. With 15.9% of county listings already reduced, sellers of long-sitting condos often listen.
Step 11: Confirm loan and project approval in writing. Do not remove your loan contingency until the lender clears the project and any assessment conditions. If the master policy changes at renewal mid-escrow, tell the lender immediately.
Step 12: Plan for the first renewal after you own it. Ask when the master policy renews and whether the board expects another double-digit premium jump. Budget a dues increase in year one so a renewal letter does not wreck your cash flow.
Mistakes to avoid
- Treating HOA dues as fixed when the master policy renews every year.
- Reading the budget but skipping the declarations page and deductible percentages.
- Ignoring a 20%–30% earthquake deductible because "we have not had a big quake lately."
- Waiving the document-review contingency to win a bidding war on a condo.
- Forgetting that ZIP medians mix houses and condos; always price the specific unit type.
- Assuming a surplus-lines carrier or a string of new exclusions is "normal" without asking why prior carriers left.
- Closing without an HO-6 quote and without lender sign-off on the project.
Quick checklist
- Condo-eligible pre-approval in hand, with deductible and assessment rules explained
- Civil Code 4525 / 4528 document package received
- Master policy declarations reviewed (limits, deductibles, exclusions, renewal date)
- Earthquake deductible converted to an estimated per-unit dollar amount
- Reserve study summary and percent funded reviewed
- Board minutes searched for insurance, leaks, lawsuits and assessments
- Pending or approved special assessments disclosed in writing
- Full monthly cost run (P&I + tax + HOA + HO-6 + cushion)
- HO-6 quote obtained
- Price, credit or buydown request tied to insurance or reserve findings
- Lender project approval confirmed before removing loan contingency
- Next master-policy renewal date noted in your calendar
What this means day to day
From downtown Los Angeles and Long Beach to Culver City, Playa Vista, Marina del Rey, the Westside, Pasadena and the Valley, a condo or townhome can still be the most practical way into the county's housing market. Inventory is up, pendings are down, and asking prices are off about 4.5% from a year ago. The catch is the building's insurance file. A beautiful unit with a 25% earthquake deductible and thin reserves is a different purchase from the same unit with a well-funded deductible plan and a clean renewal. Do the paper work first, then write the offer.
If you are weighing a condo or townhome in Los Angeles County and want help reading the HOA insurance and reserve documents before you bid, call Choice of America at 833-THIS-BROKER (833-842-7465), visit https://choiceofamerica.com/, or see our Los Angeles County page at https://choiceofamerica.com/los-angeles-county-real-estate.html. We will help you run the full monthly cost, flag deductible and assessment risk, and negotiate from the facts.
Dr. Hamid Rowshan, Choice of America. DRE #02004794, company DRE #02240008.
This article is general information, not legal, insurance, tax or lending advice. HOA documents, insurance forms, lender condo guidelines and Civil Code rules change; confirm with the association, your insurer, your lender and licensed California professionals before you buy. Figures are from the sources below as of the dates shown.
Sources:
- Los Angeles Business Journal, "HOAs Pay More for Less Coverage," October 12, 2026: https://labusinessjournal.com/real-estate/hoas-pay-more-for-less-coverage/
- Coverwatch / Assembly HOA, GlobeNewswire release, "New Data From Coverwatch and Y Combinator-Backed Assembly HOA Reveals Escalating Costs, Shrinking Coverage, and a Rapidly Contracting Insurance Market for Los Angeles-Area HOAs," October 15, 2026: https://www.globenewswire.com/news-release/2026/10/15/3381818/0/en/new-data-from-coverwatch-and-y-combinator-backed-assembly-hoa-reveals-escalating-costs-shrinking-coverage-and-a-rapidly-contracting-insurance-market-for-los-angeles-area-hoas.html
- Realtor.com Economic Research, "Los Angeles Rental Report 2026Q3," October 29, 2026: https://www.realtor.com/research/la-q3-2026-rent/
- Freddie Mac Primary Mortgage Market Survey, via FRED series MORTGAGE30US: https://fred.stlouisfed.org/series/MORTGAGE30US
- Realtor.com Residential Data, county inventory core metrics (September 2026): https://econdata.s3-us-west-2.amazonaws.com/Reports/Core/RDC_Inventory_Core_Metrics_County.csv
- Realtor.com Residential Data, ZIP inventory core metrics (September 2026): https://econdata.s3-us-west-2.amazonaws.com/Reports/Core/RDC_Inventory_Core_Metrics_Zip.csv
- FRED, Housing Inventory: Median Listing Price in Los Angeles County, CA (MEDLISPRI6037): https://fred.stlouisfed.org/series/MEDLISPRI6037
- FRED, Housing Inventory: Active Listing Count in Los Angeles County, CA (ACTLISCOU6037): https://fred.stlouisfed.org/series/ACTLISCOU6037
- FRED, Housing Inventory: Pending Listing Count in Los Angeles County, CA (PENLISCOU6037): https://fred.stlouisfed.org/series/PENLISCOU6037
- FRED, Housing Inventory: New Listing Count in Los Angeles County, CA (NEWLISCOU6037): https://fred.stlouisfed.org/series/NEWLISCOU6037
- FRED, Housing Inventory: Median Days on Market in Los Angeles County, CA (MEDDAYONMAR6037): https://fred.stlouisfed.org/series/MEDDAYONMAR6037
- FRED, Housing Inventory: Median Listing Price per Square Foot in Los Angeles County, CA (MEDLISPRIPERSQUFEE6037): https://fred.stlouisfed.org/series/MEDLISPRIPERSQUFEE6037
- U.S. Census Bureau QuickFacts, Los Angeles County, California: https://www.census.gov/quickfacts/fact/table/losangelescountycalifornia/PST045224
- California Civil Code section 4525 (association documents provided to prospective purchaser): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=4525.
- California Civil Code section 4528 (document disclosure form checklist): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=4528.
- California Civil Code section 5300 (annual budget report and reserve summary): https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=5300.