A loss assessment is a fee that may be levied against you in the event of a loss of property owned in common by the members of your condominium or homeowners association. It is your portion of the cost.
Charge for loss assessment. The fraction of the total sum payable to a homeowners association or other group of property owners as a result of property damage that is covered by the insurance policy. It is possible that certain homes insurance plans will provide coverage for this sort of expense.
What are loss assessments?
These assessments might be for property damage to common property or for liability resulting from physical harm and/or property damage for which the association is legally obligated to compensate the victims. Each HO6 condo unit policy comes with automatic loss assessment coverage included in the premium.
How much does a loss assessor charge?
The fee charged by the loss assessor is a percentage of the total loss.This cost is often between 5 and 10% of the total amount of your ultimate settlement.Although the loss assessor’s services are provided free of charge, you are required to use their suggested contractors for any repairs or other work.
The loss assessor will then get a bonus from the contractors in exchange for their services.
What is loss assessment coverage on a condo?
In the case of damage to the common spaces of a condominium complex, loss assessment insurance can provide protection for condo owners. A portion of the bill may be passed on to unit owners through the homeowner association (HOA). If you have loss assessment coverage, it may be able to assist you in defraying some of the costs.
How much loss assessment coverage do I Need?
Before you can decide how much loss assessment coverage you require, you must first determine how much homeowners or condo insurance you require for your particular situation.Take a check at the regulations of your town to determine the solution.These will outline the coverage limitations for your homes and condominium insurance policies.
This will almost certainly contain the amount of loss assessment you should purchase.