I don't see why not - and I can't imagine why it would be illegal. If there was a budget shortfall they need more money. In a condo you're sharing expenses - whatever they may be. It sounds like your association may have too skimpy a budget and higher condo fees may be in order to build a buffer in your account. Some associations prefer it that way though - they opt to keep a low balance on account and assess when money is needed for projects (or plowing as the case may be).... more
Your condo policy if it is an HO6 policy (the most common kind) should cover a loss assessment up to the amount of coverage listed on the policy. A loss assessment is the deductible on a master policy which is purchased by the condo association to cover all the exterior of the homes and any community property. If there is a loss to one of the building, each condo owner must pay a portion of the deductible. If the master policy deductible is $20,000 and there are 50 condo owners, they each pay $4000. Your condo policy would pay on your behalf up to the amount of loss assessment coverage on your personal condo policy. It is not unusual to see a $1000 loss assessment or $2500 loss assessment coverage on a condo policy. If it has $1000 loss assessment coverage, that means if there is a loss to the associations property and all members are billed for a portion of the master policies' deductible, your policy will pay up to the listed amount on the policy as a loss assessed to you by the association.