If you own a condo, there is a portion that is yours, which might be connected to a neighbor who also owns a portion, such as a shared wall, and there are also "common areas" shared by all owners. You probably have a condominium owners association (COA) and pay monthly dues for the maintenance and upkeep of the common areas. Your COA is likely responsible for the master insurance policy for the entire property, which may also be the insurance coverage for the project owners.
If this sounds complicated, it is. However, it is vital that you understand what protection you have under your condo insurance and the master insurance policy for the entire complex, the policy limits, and who is responsible when something goes horribly wrong.
To learn more about your condo insurance, you can conduct a regular condo insurance review with the help of one of our agents at Peninsula Underwriters Insurance Agency, serving Gainesville, FL.
What is a "Loss Assessment"?
A loss assessment may come as a terrible surprise to a condo owner after a disaster. It is the cost associated with common area damages that are not covered by insurance. Consider what happens when a building is completely destroyed, and the master insurance policy has a limit that is less than the cost to rebuild the common areas. The condo owners get a bill for their share of the shortfall.
These circumstances may be a financial disaster for you, unless you have loss-assessment coverage, which is usually a "rider" on your condo insurance policy, offering extra protection.
The Value of a Condo Insurance Review
Some people do not bother to read their insurance policies until after a disaster. That is usually a big mistake. A wiser strategy than leaving such things to chance is to have one of our agents at Peninsula Underwriters Insurance Agency, serving Gainesville, FL, go through the details of your condo insurance with you. Contact us today for your condo insurance review.
