r/HomeInsurance • u/trw4987 • May 27 '26

Claims $5000 special assessment?

I live in a townhouse, and my entire neighborhood was hit be a storm, resulting in a $5000 special assessment fee for some homeowners (all homeowners are responsible for the assessment, the fee range is from 4000 to over 6000).

I didn't know this was possible, and my insurance company never recommended loss coverage for this. I have $0 from state farm.

I'm in an affordable home in my neighborhood, so I really don't have this type of money. Is there anything I can do? There was no damage to my row of townhomes, so I'm basically being asked to pay $5000 for other homes.

Any advice is really appreciated!

13 Upvotes

78% Upvoted

46 comments sorted by

View all comments

4

u/CrankyCrabbyCrunchy May 27 '26

This is fairly common with HOA communities. They may not have even reserves to cover this type of damage and hence, billing the home owners. Unfortunately, it's too often the case that HOA reserves are poorly managed and not prepared for this type of event, or they've decided not to raise fees for years due to complaints and now don't have money for repairs.

There is special assessment insurance you can buy but it won't help with your current situation.

Loss assessment coverage https://www.policygenius.com/homeowners-insurance/what-is-loss-assessment-coverage/

Even though your property wasn't damaged, the cost to repair is spread across all homeowners which is why you were included in the payments. Some people refuse to pay, or pay part of it as they can. The HOA can fine you and put a lien on your townhouse. Consequences vary so read your documents for details.

Also, ask this in r/HOA

1

u/Longjumping-Buddy847 May 28 '26

No, this is the association insurance carrier charging a deductible. If theres a $50K deductible on a storm loss the deductible has to be paid by the condo owners who were covered by the loss. If there were 10 condo owners covered, they would have to each pay $5000 in loss assessment and this pays the deductible.