Those who live in a condo community share walls and much more with their neighbors. They also share risks and responsibilities, especially concerning insurance coverage. Hence, the importance of having loss assessment coverage in place plays a serious role. Agents at Creative Risk Management LLC in New Jersey explain this coverage here.
What Is Loss Assessment Coverage?
Essentially, loss assessment coverage offers condo owners a safety net when major expenses within the community arise. Damage to common areas like pools, clubhouses, gardens, and lobbies may cost more to repair than the condo association covers, resulting in a special assessment cost from the condo community association (COA) that’s passed onto owners. Loss assessment policies help pay for part or all of these bills.
Why Loss Assessment Coverage is Important
You’ll want this coverage in place to ensure you have the ability to deal with expenses that the COA’s master policy doesn’t or cannot fully fund. These are some common reasons you’d want to invest in loss assessment insurance.
- Natural Disasters: Should a natural disaster result in common area damage that surpasses the HOA’s coverage limits, this policy can contribute to your part of any financial liability.
- High Deductibles: If your HOA has a high deductible and should there be a need for expensive repairs, owners might be expected to split the amount among the community. A loss assessment policy helps pay for some or all of your share.
- Liability Claims: Should the owner, renter, or visitor get injured in a common area and any legal or medical costs exceed the HOA’s policy limits, your loss assessment policy keeps you from getting caught off guard by unexpected expenses.
We’ll Get You Loss Assessment Coverage
Protect your financial interests with a condo loss assessment insurance policy from Creative Risk Management LLC in New Jersey. Contact us today for a quote.
