Important Insurance Add-On for Condo Owners

If you are thinking of buying a condominium or if you already own one, you should strongly consider purchasing a "condominium loss assessment rider." This is very inexpensive - perhaps on the order of $12 to $30 per year at most. It covers you in the event there is a large loss as a result of a lawsuit against the homeowner's association where the reserves are not enough to cover it. In this instance, it is possible that each unit owner could be charged with a costly special assessment. This type of coverage can pay this claim for you saving you lots of money.

Also, every condo owner generally pays for condo insurance as part of the condo fee. This is the master policy that covers the common areas and exterior in most cases. You also should have insurance for your interior and possessions and have your agent add on this LOSS ASSESSMENT RIDER as described above.