Home owners insurance is a shared expense among TIC owners. Typically each co-owner contributes a monthly payment to a shared bank account from which payments are made for group expenses such as property taxes, insurance, large repairs, and maintenance.
It is important that all TIC owners are listed on the insurance policy. A policyholder, when filing an insurance claim, must prove there was damage or loss and also show proof that the property lossed or damaged belonged to the owner. If one or more co-owners in a TIC is not listed on the insurance policy as an owner, the insurer could argue successfully that they are not entitled to compensation for any loss or damage, even though they are co-owners of the property.
Good, affordable (as relative a word as exists in San Francisco) home owners insurance can be difficult to find in California. High insurance payouts for water related damage and other disasters has made insurers even more prudent. Individuals who have filed past claims may find insurance premiums cost prohibitive or even unavailable as insurers are increasingly more aware of people with a propensity to file claims.