Owning a condo comes with plenty of advantages—less upkeep, shared amenities, and a sense of community. However, many condo owners don’t realize that their personal insurance policy may not cover every potential expense. One key type of coverage that often gets overlooked is loss assessment coverage. At Garrison Insurance Group in Lilburn, GA, we want to help condo owners understand why this coverage is so important.
What Does Loss Assessment Coverage Actually Do?
When you purchase a condo, you automatically become part of a homeowners association (HOA), which is responsible for maintaining shared spaces like hallways, lobbies, pools, and parking areas. The HOA typically carries a master insurance policy to cover damages or liability claims involving these common areas. But what happens if the HOA’s policy doesn’t cover the full cost of a major repair or lawsuit? The remaining balance is passed down to the condo owners in the form of a special assessment.
Loss assessment coverage helps pay for your share of these unexpected costs. Whether it’s damage from a fire, a severe storm, or legal liability involving a common area, this coverage ensures you’re not stuck paying a hefty bill out of pocket.
Why Condo Owners Shouldn’t Ignore This Coverage
Many condo owners assume their HOA’s policy covers everything, only to be blindsided when asked to contribute thousands of dollars toward repairs or legal settlements. Without loss assessment coverage, you could face financial strain from an expense you never saw coming.
At Garrison Insurance Group, we provide condo insurance to residents in and around Lilburn, GA, and we help condo owners find the proper protection for their needs. Contact us today to learn more about how loss assessment coverage can help safeguard your finances and your home.
