HOAs have increased the deductibles on their master policies in recent years in order to keep premiums low. While this saves you money in the short term, it can mean a big expense if there is an insurance claim.

What this means for you:

In the event of a claim with a large deductible the HOA will send out an assessment to all homeowners for their portion of the claim. We have seen deductibles as high as $25,000 this past year.

Does my Home/Condo policy cover this?

Most insurance policies automatically come with some coverage for this under “loss assessment”. The automatic coverage is minimal, only $1k or $5k which would not be enough if there is a large deductible.

What should I do?

Contact your HOA to obtain a copy of your master policy to see what your current deductible is. Then review your insurance policy to make sure its limit is sufficient.

It might also be a good time to request a copy of your by-laws to make sure there are no gaps between the master and the homeowners policies.

As always we are here if you have any questions regarding your policies.

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