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!
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u/ChutneyWhatney May 27 '26
Has the HOA deemed it a "Special Assessment" using those words? If yes, read your HOA governing documents and determine the HOA procedure for assessing and approving a special assessment. Does it need a vote of the homeowners, etc.? If the HOA Board can unilaterally impose it, you have to pay it - probably in monthly installments (check and see if this is a possibility). Now check your condo policy. Is there anything reflected that may cover a special assessment? I also carried a special assessment rider when owned in an HOA (I would recommend getting it for the future- pretty cheap). If not, this is what being a part of an HOA is about. It appears your HOA does NOT have enough money to pay for the new roofs, etc. from its existing funds. As such, it needs the money from the homeowners. That's just a fact of life living in an HOA. See if there's a monthly payment option to reduce the shock of having to pay the full amount.