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While your individual condo unit may be in tip-top shape because you take great care of everything inside, certain circumstances could arise that may leave you footing the bill to repair or replace items in common areas.
It’s important to remember you still may need protection for everything outside your individual unit when you purchase a condo. Typically, your condo owners insurance only protects your unit and the contents inside.
Your condo’s homeowners association master policy covers major and minor damage to common areas, which can include everything from a gym, pool, staircase, lobby, elevator to a roof. Even though your HOA maintains its own policy, you could be assessed an unexpected bill at any time.
That’s when loss assessment coverage can come in and save the day — and your bank account. Loss assessment coverage isn’t a required add-on to your HO-6 condo insurance policy. It’s imperative to look through your HOA’s master policy limits to see how much coverage it protects.
