Thursday, September 15, 2016

Condo Loss Assessment Coverage

Condominiums are a popular choice for homeowners at the Lake of the Ozarks. When you buy a Lake of the Ozarks condo insurance policy, you'll likely have the options to purchase loss assessment coverage. In today's blog, your favorite Lake of the Ozarks insurance company will explain what this coverage is and when it could come in handy.

What is Loss Assessment Coverage? 

Loss assessment coverage is protection condo owners can use on claims involving the building or its common areas. In most condo complexes, the condo association will have its own insurance coverage that covers incidents outside of your personal unit. However, sometimes these claims can exceed those policy limits. In that case, you and other condo owners in the building may be asked to chip in. That's where the condo loss assessment coverage comes into play, so that you're not stuck paying that expense out-of-pocket.

Reasons This Coverage Would Be Necessary 

Now that we know what loss assessment coverage is, let's take a look at a few examples of when this coverage might be needed:

1. Someone is seriously injured on common property and the courts award a judgement that's higher than the amount of liability coverage provided by the condo association's policy. When you live in a condo, especially at the Lake of the Ozarks, there are a lot of people that come and go from the building, many visitors of whom you don't even know. You probably don't spent too much time thinking about these individuals, however, because your condo association is in charge of the common areas, you have a partial responsibility for whatever may happen to those guests on the property. If someone is injured, in the pool area or on the steps entering the building, the injury bills could exceed the liability coverage limit on the condo association's insurance policy. In that case, you and the other owners might be expected to cover the difference.   

2. Shared property inside the building, such as elevators, stairwells, the lobby, carpeting, etc. has been damaged and the condo association's insurance doesn't cover the full cost of repairs. When you live in a condo that you own, you have a shared responsibility for the common areas, there's no landlord to take on that responsibility. Therefore, if a fire, gas leak, explosion, water leak, or other covered loss damages shared property inside the building, your and your neighbors are jointly responsible for any costs that may exceed the limits of the condo association's policy. Loss assessment coverage will help you keep the building in working order and make the repairs you and your neighbors can't do without. 

3. Major damage, possibly due to severe weather, occurs to the condo buildings and it is not fully covered by the condo association's insurance. If a major hail storm comes in and damages major parts of the building, chances are the condo association's policy is going to cover the majority of the expense. However, let's say there is $600,000 worth of damage and the policy has a limit of $500,000. In this case, the condo association might assess that extra $100,000 to the property owners. Your portion of that money could be covered by having loss assessment coverage on your condo insurance policy.

Talk to a trusted insurance agent at the Lake of the Ozarks today about condo loss assessment coverage. At Insure the Lake, we can handle all your insurance needs, from home and condo insurance to auto and life. Give us a call at 573-348-2794 to discuss your insurance questions or get a coverage quote today!

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral