Between homes, bridges, pools, and power lines, hurricanes don’t discriminate. Damage is everywhere and happens to everyone. But while your homeowner’s insurance covers your home, what happens when the community clubhouse or other common area gets damaged?

This, my friend, is when those two little words, “loss assessment,” come in on your condo/townhome/homeowner’s policy. So what exactly does loss assessment mean?

On your insurance policy, loss assessment covers up to your policy’s specified amount for your share of loss (as determined by your property or homeowners association). This means that if you are a part of any community or association who charges you money to repair damaged common areas, this coverage kicks in.

This coverage kicks in only when you have similar coverage on your home. For example, if damage from wind is not covered on your homeowner’s policy, your policy will not cover for wind damage “assessed” – or charged you – by your homeowner’s association.

So how much loss assessment coverage should you have? Most policies include a minimum of $1000. For homeowners who have an HOA, we recommend adding at least a few thousand dollars. For condo owners, because damage can be greater in more areas, we typically recommend the highest amount your insurance company offers.

Damage assessments could include anything from a broken elevator, to a new roof, or even removing fallen trees. As a condo owner who is part of the community, you may be asked to bear part of this burden. This coverage doesn’t only extend to damage from hurricanes, but might also extend to other losses such as those from fire or liability claims.

If you have any questions or would like to do an insurance review, please give us a call today; we’re happy to help.

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