Imagine for a moment that a child drowns in the pool at your Las Vegas condominium complex. A lawsuit is filed and a jury finds the condo association was negligent and awards $5,000,000 to the parents. The association only purchased $2,000,000 of liability coverage and is left with $3,000,000 of uninsured losses that must be paid. The likely outcome is an assessment of each unit owner for their share of the loss. Does this sound far-fetched? Read your association master documents and you will almost certainly find verbiage that allows the association to assess each unit for uninsured losses or a policy deductible that affects common areas or one or more units. How would your Las Vegas condo insurance policy respond?
In a situation like this, Loss Assessment coverage added to your HO6 or condo unit-owners policy can come to the rescue. The standard HO6 policy comes with $1,000 of loss assessment coverage, but you increase that limit to $50,000 or higher depending on the insurance company. To determine how much loss assessment you should consider, we recommend you review your association master documents and insurance coverage. Call the insurance agent for the association and discuss where the master policy ends, and your unit owner policy should begin. We recommend you carry at least $10,000 of loss assessment, but a higher amount might be appropriate for your situation.
You can contact us anytime for questions, or no-obligation quotes for Las Vegas condo insurance.