A Must for Any Northern Virginia Condo Owner: Condo Insurance

By
Real Estate Agent with Long and Foster REALTORS®, Gainesville, VA VA License # 0225089470

A must for any Northern Virginia condo owner is condo insurance.  This is not an orginial thought.  Master insurance policiies that are paid by your monthly condo dues covers the basic structure of the condos.  If you want to insure your contents (furniture, clothing, jewelry, etc), you need to have your own condo insurance.

Another item that condo insurance can cover, with an additional annual premium of approximately $25, is loss assessments. 

A loss assessment is a special assessment that is be levied against condo owners when the condo association is facing increased delinquency in monthly dues.  For instance, when a condo neighborhood is seeing an increase in foreclosures, the condo association is likely to be seeing increased delinquency in the payment of condo dues.  This affects the overall condo budget, and if not corrected by the passage of time and influx of new owners, will need to be corrected by a special assessment.  These assessments can be in the thousands of dollars.

Northern Virginia, particularly Western Prince William County where many condos where constructed during the real estate boom, is experiencing a lot of turnover due to foreclosure and short sale.  These distressed sales are negatively affecting condo budgets.  A dramatic example of this delinquency rate is the Gainesville condo community of Park at Piedmont.  So for existing and new condo owners, paying an additional $25 or so, per year to cover loss assessments seems a no-brainer.

Ask your insurance agent about loss assessment coverage for condo owner policies.  Some policies will cover up to $50,000 per occurence.  That is incredible piece of mind for a condo owner.

Comments (10)

Sallie Williams
Keller Williams Realty RED STICK PARTNERS - Baton Rouge, LA
REALTOR - MBA, Baton Rouge

Chris Ann, with some shopping around, or adding to a multi-line policy with a current insurer, the insurance can be purchased for a reasonable price.  I am a strong proponent of any kind of insurance that's available.  People wonder why I purchase flood insurance in a non-flood zone ... just to be prepared for anything!!

Jan 20, 2010 04:52 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Sallie:  Purchasing that insurance is a great idea.  I live "next to" a 100 year flood plain and wasn't required to do it either.  However, after one week long rain storm, I was ready to make the call.  The water next to me rose really quickly.

Jan 20, 2010 06:36 AM
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Is this something available only in Virginia? Sounds like a no-brainer to me to get loss assessment coverage. Of course, regarding flood insurance, I think everybody should have flood insurance, regardless of where one lives.

Jan 21, 2010 01:38 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Elizabeth:  I'm with you on the flood coverage.  As for the condo loss assessment policy, I don't know that if that is specific to our state.  I certainly hope not.

Jan 21, 2010 05:17 AM
Anne Clark
Metro Referrals - Gainesville, VA

This is a great post.  I had no idea that condo inusrance would cover special assessments.  In this economic climate, that's a must have.

Aug 07, 2010 04:28 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Anne:  So many condos in our area of Western Prince William County are having financial trouble that the extra coverage at such a low rate is a no brainer.

Aug 07, 2010 04:46 AM
Yvette Chisholm
Long & Foster Real Estate, Inc. - Rockville, MD
Associate Broker - Rockville, MD 301-758-9500

I can't believe they offer coverage for that - what a good thing for condo owners.

Aug 10, 2010 04:25 AM
Alan Bruzee
Long & Foster Real Estate, Inc. - Rockville, MD

Great post Chris...worth a feature...who knew...everything is changing so often...it is great to get fantastic information like this.

Aug 10, 2010 04:26 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Yvette:  I couldn't believe it either.  If I owned a condo, I would certainly have this additional coverage.

Aug 10, 2010 04:39 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Alan: Thanks.  I'm glad you found the information useful.

Aug 10, 2010 04:40 AM

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