Association and Homeowners Insurance

• Flanders Crossing Homeowners Association maintains insurance policies to protect the Homeowners from losses to our common property, and any liability suits brought against the association from third party claims of bodily injury, resulting from the common areas owned by the association.
  
  There are situations in which each homeowner may be assessed for property or liability losses of the association. The FCHA board has asked me to address these situations, and how each of us as individual homeowners can best protect ourselves.
  
  Any loss that is not covered by the association’s insurance policy can be assessed equally among all homeowners. While this is a possibility, it is unlikely, as our association has purchased the broadest property and liability insurance available.
  
  The other area of assessment can come from inadequate limits of insurance to cover a loss. For property insurance, this is a relatively easy figure to obtain, and we believe the limits carried represent 100% of the association’s property values. Liability limits are much more difficult if not impossible to determine before a loss happens. The association is covered for $16,000,000, for any one-liability loss. Any loss in excess of this amount can be assessed equally to all homeowners.
  
  A standard homeowner policy has coverage for Loss Assessment. This coverage will pay up to $1000 per loss, for your share of loss assessments charged against you by the association, when the assessment is made from.
  • Direct loss to the property, owned by the association
  • Bodily injury or property damage liability
  • Liability for an act of a director, officer or trustee in their capacity as a director, officer or trustee.
  
  A homeowner policy can be endorsed, for an inexpensive premium, to increase this coverage up to a maximum of $50,000 per assessment. Your agent should be able to answer any questions you may have regarding loss assessment coverage.
  
  FCHA Board of Directors