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Loss Assessment Coverage and How it Relates to You

By September 3, 2019Fogle Blog

HOAs have increased the deductibles on their master policies in recent years in order to keep premiums low. While this saves you money in the short term, it can mean a big expense if there is an insurance claim.

What this means for you:

In the event of a claim with a large deductible the HOA will send out an assessment to all homeowners for their portion of the claim. We have seen deductibles as high as $25,000 this past year.

Does my Home/Condo policy cover this?

Most insurance policies automatically come with some coverage for this under “loss assessment”. The automatic coverage is minimal, only $1k or $5k which would not be enough if there is a large deductible.

What should I do?

Contact your HOA to obtain a copy of your master policy to see what your current deductible is. Then review your insurance policy to make sure its limit is sufficient.

It might also be a good time to request a copy of your by-laws to make sure there are no gaps between the master and the homeowners policies.

As always we are here if you have any questions regarding your policies.