Loss Assessment

Loss Assessment

When being an owner of a condo unit you also become a part owner of the “common area” of the condominiums association. For example, if there are 200 condos in your association you are 1/200^th owner of the common area. Your personal insurance covers everything from the sheet rock in while your HOA covers everything from the sheet rock out. Since you are an individual owner of a unit and a “part” owner of the common area it is very important that your individual property insurance includes loss assessment.

Loss assessment means if your HOA experiences a large loss involving liability claims or property damage (hail, wind, lawsuit etc) they will come after all the residents to reach the HOA’s insurance deductible. When you purchase loss assessment for your individual insurance policy you are protecting yourself in case of a large claim with your HOA. Loss assessment pays up to the limit on your policy without you being subject to your deductible. Many insurance carriers automatically include $1,000 of loss assessment, however it is important to talk to your insurance agent to see what it would cost to increase your limit. Some companies max is $10,000 while others can be up to $100,000.

You do not want to be the neighbor who is paying $2,000 or $10,000 to the HOA because you did not add or increase your loss assessment limits to your policy. It is a relatively cheap endorsement that could come in vital after your neighborhood has experienced a large loss.

Get a free quote today or review your coverage with one of our insurance specialist at CIS.

www.cisforyou.com

1-888-265-6467