If you live in a condo association this is for you. The below article state that one in every six homeowners lives in some sort of association.
With experience on a condo association board I know how getting so many people on the same page can be a bit like herding cats – nearly impossible. If you have served on a board you certainly know how hard it can be to get things accomplished and often there is grey area between the value of the structure and what is insured, and what policy insures it…
Because so many people own some sort of condo the likelihood of the master insurance policy not having enough coverage is high. This opens the door to the scenario where there is a loss and the master policy does not have enough coverage. When this happens the association must pay for this out of pocket and if there is not enough money in the reserve fund the association may be forced to assess the owners within the association to pay for the damage.
This can be insured by the unit owners for property and liability. The coverage is called “Loss Assessment” and the property coverage part is easily added to a condo policy and 50,000 in coverage typically will be under $40 a year.
Read the below for more information:
http://www.iamagazine.com/Magazine/2013/March/loss-assessment-hurricanes-townhomes.aspx
With any more questions, please call DG at 781.237.1515
