rates for condominium master policies have been on the rise. To keep
the premiums affordable, many associations have opted for higher
deductibles of $5,000, $10,000 or even $25,000. Not only does that keep
the premiums affordable, it also minimizes the number of claims made
against the master policy, which helps keep the rates low.
the problem: If the loss is caused by you from, say, a kitchen fire or
dishwasher overflow, or is confined to your unit, most associations will
require you to pay the deductible on the master policy.
problem," you say proudly. "I have loss-assessment coverage on my
homeowners unit-owner policy." Virtually all laws on assessment coverage
limit deductible assessments to $1,000. If that wasn't enough bad news,
it also requires that the assessment be against all unit owners.
bottom line is that you will need to get a relatively new coverage --
separate coverage -- called "deductible assessment" coverage. Find out
what your association master policy deductible is and buy deductible
assessment coverage for that amount from your insurance agent.