Insurance to cover rising HOA assessments?

[James McGovern]

I am interested in purchasing a few condos in Florida and want to understand if there are any insurance products that cover the rising cost of HOA assessments?

[Kristine Hodges]

Agree that no insurance will cover future increases in cost of monthly or yearly HOA assessments (dues). If you're referring to a special assessment, the ones for major expenses not covered by the regular dues, then maybe. Some carriers offer loss assessment insurance, which can come into play when the HOA experiences a large covered insurance loss, such as a hail storm requiring roof replacement or a fire requiring building replacement. In those cases, if the HOA assessment is a direct result of the insured loss, it can kick in a specified amount towards the individual HOA members portion of the assessment. This is something you do on your own units policy. And not available everywhere or to everyone. You need to work with an experienced insurance broker who knows HOAs. Don't call the random agent down the street with the company that advertises on TV. Those carriers don't usually have this option. It can also be very expensive and the limits are usually low. So may not be worthwhile even if it is available. Lots of variables involved and depends on your personal situation of course. This is another example of why it's so important to have a good team of experts around you to offer options and discuss the consequences before making any decisions.