A median of $622,900 with 84.4% ownership, much of it inside associations. When a community takes a loss larger than its own cover, the shortfall is divided among the owners.
A special assessment after a community loss can land on every owner. Loss assessment cover pays your share.
Three things about belonging to a community.
If an association suffers damage or a liability claim exceeding its insurance, it can levy a special assessment on members to make up the difference. That is a direct personal cost arising from something that happened to shared property. Loss assessment cover on your own policy pays your share up to a stated limit.
Master policies often carry large deductibles, and some associations pass a share of that to owners after a claim. It is a smaller figure than a catastrophic shortfall and it is far more likely to actually happen.
Where loss assessment cover is included it is frequently a modest amount, often a thousand dollars or so. Raising it is generally inexpensive, and in a community with substantial shared amenities it is worth more than the default suggests.
Your exposure to the community’s losses.
More shared amenities means more potential for an assessment.
Large deductibles get passed along more often than shortfalls do.
Usually small by default and cheap to increase.
Send the association documents and the master policy declarations if you have them.
We raise the loss assessment limit, which is almost always left at default.
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