D.K. from New Haven County, Connecticut writes:
Dear Mister Condo,
The condo complex (18 units) has had some insurance claims and now has a high $25,000.00 deductible on its insurance policy. I understand that I have “Loss Assessment” coverage of $1000.00 on my homeowners’ condo policy. Will this coverage pay for an assessment to the unit owners that is done to pay the deductible on its insurance policy? Or is it strictly for over and above the coverage provided.
Mister Condo replies:
D.K., that is an interesting question. Perhaps one of my friends in the condo insurance business will chime in with some extra advice. First off, ask the very same question to your insurance carrier. They may or may not be able to give you a straight answer because my experience has shown that there is a myriad of “exceptions” to typical HO-6 policies in Connecticut that leave you vulnerable when the association insurance doesn’t cover as much as you think it should. There may even be a “gap” policy for you to consider. Typically, assessments are not covered by HO-6 policies, for obvious reasons. Assessments could be for many reasons and covering a deductible to an association policy is not the same as you experiencing a personal loss, which is what they HO-6 is for. I am not an insurance expert but I have seen my share of claim horror stories over the years. I don’t think I’ve ever been asked your question but I am guessing your insurance agent can give you an answer that you can count on. My instinct is to say “no” you’re not covered but please ask your insurance agent as well. All the best!