Do you own a home, townhome or a condo with an HOA? Then you need loss assessment coverage.

Imagine someone injures themselves at the pool or tennis court of your condo complex, what happens next? Well, the HOA will likely be found liable and sued for damages.

When the HOA is sued and they need to pay a large deductible on their insurance policy, or the damages exceed the HOA’s liability coverage, they will assess these losses (hence loss assessment) on the unit owners who will have to share the cost.

If you do not have loss assessment coverage, you will have to pay out of your own pocket. If you have the coverage, then you need not to worry, you can file a claim with your insurance company and they will pay out up to the loss assessment limits that you have on your policy.

Here are some common scenarios which you may find yourself in that would require loss assessment coverage:

1. Weather or fire damage to the outside of your condo or townhome. Remember, your condo insurance only covers the inside (commonly called walls-in or studs-in) of your unit. The HOA is responsible for the rest, but if the HOA’s insurance is not up to par, or they have a large deductible, then they pass the losses and deductible costs onto you and the other unit owners in the complex.
2. Injury in a common area, such as the community pool, gym, tennis court, etc.
3. Property damage to a common area in the complex.

Speak to your agent today to make sure you have this valuable coverage, you may be surprised by how inexpensive it is!