From an integrity stand point, yes, you should. However, there is really no recourse on the HOAs behalf other than to place a lien on the property. Which, if it's foreclosed, will then become the burden of the foreclosing bank. If you are living in the property, then I would continue to have insurance because this also covers your personal belongs (the amount of that coverage set by you and is factored into the premium). And by law, I believe you need to have hazard insurance and could face a law suit should something happen.
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