I get asked condo questions daily in my work as an insurance agent. So I decided to post a few in a series called ” dear Mr Condo Insurance”
These are not meant to be the be all and end all of all answers, and they should not have any reflection on my work at the agency, as this is a private site meant to help people. Always ask your lawyer or your insurance professional.
DEAR MR CONDO INSURANCE GUY:
I recently got an assessment to replace our roof. It is big money, and I remembered something in my unit owner homeowner insurance policy call loss assessment coverage. I called my agent and I was not covered.
What’s up with that.
DEAR NOT COVERED:
Not sure of all the details, but my guess is that your insurance professional is right.
Loss assessment coverage does not cover much at all, hence that fact that it is so cheap. It covers you for uninsured covered losses to your unit that were not covered by the master policy and were assessed to the unit owners.
The big deal is that your home or unit owner policy probably has the same coverage or less coverage than the master policy, so there is little likelihood that you will ever have a ” loss assessment loss’
Also, my guess here is that there was no loss to the roof, but it was replaced and assessed due to a maintenance issue.
where might you be covered? let’s say that you have earthquake coverage on your unit owner policy and the association does not. The earthquake hits, and there is no coverage and you are assessed to repair the damage. Then you have a case for loss assessment. Or , if the association policy limits were exhausted and you were assessed for the shortfall in coverage.