When you own a condo or a unit in another type of multi-family property, your community’s coverage may be enough to cover the common or public areas. There’s no guarantee that it will cover damage that affects your unit, though, even if the damage is widespread across the complex. To make sure you are compensated for the cost of necessary repairs, you may need to get additional loss assessment coverage.
A disaster to the property at large is likely to cause a lot of damage to individual units. Ideally, your association’s property policy covers a number of issues:
- Damage to common areas
- Damage to the exterior of the building
- Damage to signage or security structures
It may even cover most of the damage to your unit as part of the overall property. Once the policy limit is reached, however, the remainder of the expenses may fall to individual unit owners.
Loss assessment coverage kicks in where the general property policy stops. It protects you from out-of-pocket costs of large-scale damage from a fire or storm.
No matter what type of property you own, you need to make sure you have adequate insurance to cover anything that might happen to it. With loss assessment coverage, you enhance your protection.