Loss Assessment Coverage for Condos

A recent quest came up when client asked how the Condo Loss Assessment coverage works.  Condo policies are a classic example of building a policy, since Master Policies vary tremendously. It is best to check the Master Policy for it's included and not included items.  I've heard of Condo/Villa and Cottage style homes including hail loss and not including a hail loss by the master policy.  A person MUST know how their Association handles issues such as this.  A loss sustained by a Condo Assn can be assessed evenly to it's unit owners.  

Condominium policies are not Guarantee Replacement policies so knowing how to choose your coverage's is vital.

Assuming the loss is a covered loss, a Master Policy may carry $10,000 deductible and divide the assessment over the 20 units evenly.  It's possible uncovered losses will also be assessed as well; however, don't expect your condo policy to help on this situation.  Many other assessments, such as adding pool, pool house, tennis courts, parking lot resurfacing  will not qualify as an insurance loss assessment loss.  An example of covered loss, is a hail loss damaging all rooftops, siding etc.

It's best to check all the available options with your insurance carrier and select which one fits your Condo Assn.  When in doubt, I'd always suggest obtaining more coverage than you might think.  Any questions please contact Flanigan Insurance agency at 314-727-6000.