Loss assessment coverage is an optional add-on to your condo insurance policy that can help in the event of an accident in a shared area of the condo property, such as lobbies, stairwells, pools, outdoor spaces and more. It is customary for a homeowners master policy to provide coverage for incidents occurring in the following shared areas; however, if the damages exceeds the master policy’s limits, you may end up having to contribute financially (whether they were involved or not). Adding loss assessment coverage to your condo insurance policy, may save you from paying out of pocket.
Generally, the homeowners master policy provides coverage for incidents that occur in shared areas; however, if the amount of the damages exceeds the master policy’s limits, the residents of the condo may end up having to contribute financially (whether they were involved or not). By adding loss assessment coverage to your condo insurance policy, you may be able to avoid paying out of pocket for these types of expenses.
Loss assessment coverage is not required for your condo or HO6 insurance policy. However, it can come in handy in the event of unexpected damages. Loss assessment claims could include personal liability incidents in shared areas, exterior vandalism or even damage to the building’s shared interior spaces resulting from fire, certain natural disasters and more. These accidents could cost thousands of dollars to repair – and if the master policy’s limits are exceeded, tenants are required to collectively pay the difference. Loss assessment coverage can protect you financially in the event of such an incident
The policy limits you select for your individual loss assessment coverage should depend on your COA’s master policy limits. Talk to your COA about the master policy’s loss assessment limits before getting a condo insurance quote.
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