Many people who live in condos or town homes have loss assessment insurance but do not have special assessment insurance. Many homeowners do not know about the latter.

In Colorado we are not in danger from natural disasters like hurricanes or tornados, but we are at risk for hailstorms. It feels like every couple of years we are hit with a large hailstorm that damages roofs, sidings, and windows. If you live in a condo or townhome, it is common for the HOA to file an insurance claim for the repairs. There will be a deductible for the loss assessment that is passed onto the homeowners to pay.

For example, if there was one million dollars of damage done to the buildings of 10 condo owners the deductible for each owner might be $10,000. This is where special assessment insurance comes in. Because the cost of the repairs is not factored into the monthly HOA dues it is considered a special assessment. This is a large sum of money due from the homeowners to the Association. Special assessment insurance will help pay for the deductible of the loss assessment. Instead of paying the $10,000 for the deductible, you may only have to pay a $1,000 deductible as the insurance will cover the rest.

Special assessment insurance is normally very cheap to add onto your policy and could save you from a large deductible payment. It is worth asking your insurance provider about this extra coverage. Contact me for any further questions about this insurance or about the Fort Collins real estate market!