H06 Condo Insurance Loss Assessment Limits

A message from Wayne Trent concerning H06 Condo Insurance Loss Assessment Limits

I would like to follow-up with just a little more information for our residents concerning their individual HO-6 insurance coverage.

Coverage D—Loss Assessment pertains to the HOA having sustained a covered loss for which there is not enough coverage or funds to offset the loss or perhaps the accompanying deductible. In this rare  case, the board would have to turn to the owners and assess them for making up the difference. Coverage D —Loss Assessment is just for this situation, albeit a remote one.

I encourage all the residents to look at their own policies and examine the limit they are carrying for loss assessment. In my opinion, it should be $10,000 or more. This is a relatively inexpensive coverage. I personally carry $25,000 as a limit.

There’s lots of information online to educate anyone on how Loss Assessment works in condo situations.

Also—-just to be clear, this has nothing to do with the roof assessments we are having now that relate to MAINTENANCE, and not insurance loss.

Thanks for getting the word out to our neighbors.

Wayne Trent