HO-6 Loss Assessment Endorsement will not cover...

by daces92514 » Wed Apr 13, 2011 01:09 am

Is there any policy or endorsement that would cover a unit owner's loss assessment that is due to a Deductible on a Condominium Master Policy, the Earthquake Policy? We are a 7 unit bldg. in Los Angeles, California. Our Earthquake policy deductible is about $238,000 ($31,000 each.) We only have $18,000 in reserves. We have learned that our unit owners policy endorsements for loss assessments with earthquake Exclude coverage for a Master Policy Deductible. Any ideas out there?

Lisa

Total Comments: 2

Posted: Wed Apr 13, 2011 06:50 am Post Subject:

Just curious to know -
If it's a 7 unit building with $31,000 worth of deductible each, then the total amount of deductible that has to met comes to $(31,000X7)=$2,17,000. Does the remaining $(238,000 - 217,000)=$21,000 go towards other associated charges?

Posted: Wed Apr 13, 2011 10:49 am Post Subject:

Yes, there's something known as a loss assessment coverage. It will help repay for such assessments that you need to share. A standard loss assessment coverage is for $1,000, but you may also apply for higher limits.

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