What is condo loss assessment?
A condo loss assessment occurs when a condo association asks condo owners to help pay for the costs of damage to common property or personal injury on the premises.
One of the unique issues with insuring your condo is loss assessments. Sometimes condo owners are assessed by their condo association if there is damage to common property, or if someone is injured on the premises. Common scenarios include:
- Condo complex suffers a catastrophic loss and doesn't have enough insurance to cover the damage; example, from a major rain or windstorm.
- Association bought less insurance than the amount it is sued for by an injured guest; example, in a swimming pool accident.
- Damage to the complex caused by something not covered under the association's insurance.
- Association's policy has a high deductible, and condo unit owners are assessed to help pay for it.
These are just some of the reasons why our loss assessment coverage in our Condominium policy is so important. You can receive up to $50,000 additional in case of a loss assessment by your condominium association. Be protected with loss assessment coverage.