Recently we’ve noticed that some of our clients are making the switch from homes to condos. But with that switch comes a difference in insurance coverage. A condo insurance policy is very similar to a home insurance policy (which covers dwelling, other structures, personal property, loss of use, and medical payments) however there is an additional type of coverage that is very beneficial to a condo owner. This coverage is called Loss Assessment.
Loss Assessment coverage is a unique feature of a condo insurance policy that provides additional coverage in the event that each condo owner is assessed a proportionate share to cover major property and liability losses. For example, if the building and commonly shared areas are destroyed by an insured disaster, such as a windstorm, and the losses are not fully covered by the master policy, your condo association may assess a certain amount to all unit owners to cover the loss. This is why Loss Assessment coverage is important to have.
Still wondering what the differences are between homeowner’s insurance and condo insurance? Not quite sure about the added benefits of Loss Assessment coverage? No problem! Here at The J. Morey Company, our friendly and knowledgeable staff is ready to help answer any questions you might have. So give us a call today and we’ll help you find the right coverage you need!