If you own a condo, it is likely that you have two types of insurance coverage on your property: a master policy – owned by the condo association – that protects the common property and structure of your condo, and an individual policy that protects your personal property. However, both of these policies don’t ensure that you won’t have to foot a large bill in the case of property damage. In the event of a master plan insurance claim, you could have to pay a large deductible.
Who pays for master policy deductibles?
Who pays for the deductible when your condo complex is damaged? While it depends on the circumstances surrounding the damage, the cost of the deductible is often split between all of the condo owners. Depending on your policy’s deductible and the number of units in your complex, you could owe hundreds or thousands of dollars.
Deductible Assessment Coverage
Especially if your master plan deductible is large, or in case you believe you could be in a position to pay the entire deductible, you may wish to consider purchasing deductible assessment coverage. This coverage, which is specifically designed for condo unit owners, covers your costs in the event that you are stuck with a large deductible to pay toward your master policy claim. In many cases, this coverage can mean paying just a few extra dollars in order to avoid suddenly getting stuck with a bill for thousands.
The best way to know if you need deductible assessment coverage is to understand all of the insurance policies associated with your condo unit as well as what your responsibilities would be in the event of property damage. If you have questions about your coverage needs or about a recent condo insurance claim, talk to one of our attorneys today.