How to Protect Yourself from the HOA as a Condo Owner
Did you know that as a condo owner, you can be held financially responsible for damage to the condo building and shared areas of the property? The portion that you pay is known as loss assessment and you may surprised to find out that the amount is completely determined by the HOA. In order to make sure that you can afford any of these unexpected damage payments, your condo insurance policy should have loss assessment insurance.
Why Loss Assessment Coverage Is So Important While it’s true that cost of damages will be divided among all owners in your condo, you could still be looking at numbers in the thousands. If your HOA has not insured the building properly, or has an extremely high deductible, then you could be on the hook for much more than you can afford. Loss assessment can help protect you from these unforseen and unwelcome expenses, including:
Claims from building damage
Claims from shared areas (such as pools, playgrounds, walkways etc…)
Claims from injury on shared areas Don’t just assume that your HOA building insurance will be sufficient! If the damage exceeds their coverage or they can’t cover the deductible, then they will come knocking on your door to help cover the excess costs.