WP, Home Buyer in Redondo Beach, CA

For earthquake insurance, is "loss assessment" coverage not applicable for condominiums that have no association?

Asked by WP, Redondo Beach, CA Tue Jul 10, 2012

I live in a A/B type of condo (two units on a lot). From the writing it sounds like it's only covering what is "imposed by the association", since I don't have an association it doesn't make any sense to me.

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The Escobar Group’s answer
That is a very technical question... by definition every condominum has to have an HOA.... is part of the department of real estate filings when you file for a subdivision...

Ron Escobar
Real Estate Super Expert!
0 votes Thank Flag Link Wed Jul 11, 2012
From a insurance perspective and if you have two different addresses according to the la county records, you may be required by your lender to have two different polices for each unit. Also, remember that if you don't have a association then you may be the one responsible for the outside walls and the whole property itself. If that's the case you might want to get a habitational policy that covers both the property with the structure on it and also whatever personal property you may have. Most HOA's cover the dwelling up to the 4 walls, from the 4 walls in, it becomes your responsibility to insure your building property such as carpet, walls, plumbing, bathrooms, kitchen, Kitchen counter, cabinets, appliance and what not. Usually it's going to cost about 45.00 a sqft to replace the condo inside the 4 walls. From what it seems to me, you maybe responsible for both the inside and outside since you don't have a HOA. HOA'S usually get their own master policy to cover structures and outside property liability only. If you are still in need of more info, you can call my office at 323-546-3030 or go to http://www.casurance.com to request a quote.
0 votes Thank Flag Link Mon Oct 29, 2012
It sounds like you are on the right track. A loss assessment is the amount each owner must pay to cover a deductible on a master policy. The master policy is purchased by the association and when there is a claim, everyone pays a portion of the deductible and the insurance company on the master policy pays for the rest. If you do not have an association then you may not have a master policy. If that is the case then you need a homeowners policy and a homeowners earthquake policy because I am assuming you would want your home rebuilt in the event of a catastrophic claim. Since there isn't a master policy, the entire damages would fall on you. As a side note, we write earthquake, homeowners, condos, and condo association master policies.

Donald Stevens
0 votes Thank Flag Link Wed Jul 11, 2012
Did you try gettIng clarification through your policy holder? When was your policy written? Isnt it renewed at the end if the term? Dud something happen recently that prompted this inquiry?
0 votes Thank Flag Link Tue Jul 10, 2012
Sorry, I should've put more info. I just bought the condo and home insurance. The asked me if I wanted earthquake insurance as well but I wanted to read the copy first. I'm a new home owner so all this is new to me but I've been hovering around this site for a while and it rocks. Thanks for your help!
Flag Tue Jul 10, 2012
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