Loss Assessment Coverage Can Protect Co-op and Condo Residents
Herrick partner and chair of the Insurance & Reinsurance Group, Alan Lyons, was quoted in Habitat Magazine's Bricks & Bucks column in a piece discussing loss assessment coverage for condominium and cooperative residents. The article states that this insurance policy "usually protects residents if the building’s master policy fails to cover all costs for liability or for damage to the building’s exterior or common areas – and the board is forced to assess residents to cover the difference. A loss assessment policy will pay the resident’s share of that assessment, up to the limit set in the policy. That limit, while usually small, can range up to $100,000."
Alan explained, "It’s not something for boards to advise their shareholders or unit-owners to buy," adding that loss assessment coverage is "something residents should discuss with their broker. Many unit-owners and shareholders may not be aware such coverage exists. The coverage limits are usually low, but it can be useful. Assessments are not budgeted for. They’re a surprise. This coverage can’t do any harm."
Read the full piece in Habitat Magazine here. Access may require a subscription.