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Thread: What is the difference betweeen "loss assessment" and dwelling/building coverage for condo

  1. #1
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    Dec 2010
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    Default What is the difference betweeen "loss assessment" and dwelling/building coverage for condo

    I recently purchased a condo and need insurance. One of the things that I would like to have coverage is for my interior. Most insurance companies have policies that cover my "dwelling" or the building property insurance. I've been getting quotes from various insurance companies and brokers.

    Country agent told me that they do not have dwelling coverage but that "loss assessment" would cover the drywall and the interior if something should happen. I've done some online searching and that seems vague at best.

    If I understood the agent correctly, if my neighbor's shower started leaking and destroyed my bathroom I would be covered? Is that true? I need to know before I make my descion. I want my falls, cabinets, and the inside "built in things" to be covered in case the neighbors have problems and their insurance would not cover.



  2. #2
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    amd555,

    My best guess as to what your agent is trying to describe to you is as follows:

    The policy written for you has coverage for "loss assessment - normally up to $1000. This coverage is if the condo complex you live in has large amounts of damage from disasters fire involving multiple units, tornados, hurricanes etc and has large deductibles that the HOA has to pay. The HOA would then "assess" each unit owner a portion of whatever amount was needed. Condo HOA's normally "assess" unit owners for things like new roofs, siding and large maintenance items outside of the day to day stuff.

    The HOA's polcy normally covers the structural items cuased by covered losses, but your policy, most likely and HO6, should still have some coverage for the interior improvements as you are asking about. This coverage would be for the differences between what the HOA's master policy covers and the actaul finishes. Example: The condo had vinyl floors in the kitchen when you moved in and you upgraded to tile. The master policy ought to cover the cost of the original vinyl and you HO6 ought to cover the difference in cost for the tile.

    The cost for increasing the "building additions and alterations" as it is called in NC should be minimal. If your agent cannot fully assure you of the amounts you feel you need, then have another agent quote it and compare.

  3. #3
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    Default

    Impressive points you have mentioned out here regarding the difference between the loss assessment and dwelling/building.I am really looking forward more difference between them...

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