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All You Need to Know about Loss Assessment Coverage for Condos

All You Need to Know about Loss Assessment Coverage for Condos

Loss assessment is a form of insurance coverage for condo owners. It offers protection in cases where you are the owner of a shared property, and are held responsible for part of the deductibles or costs for damages to the building, shared areas of the property, and injuries that occur in shared areas of the property. The amount to be paid by each owner is evaluated by the homeowners association or condo owners association. This is referred to as the loss assessment. To cover the damage, you will be required to pay your share.

Loss assessment also provides coverage for some losses where the homeowners association requires you to cover your share of damages that are not covered under the building master policy or exceed the coverage limit on the existing building or homeowners association insurance policy.

What Does It Cover?

Loss assessment could be applied to property damage, liability, or deductibles. It can apply to anyone who owns a unit within the shared community property that is usually managed by a homeowners association or a condo owners association. Loss assessment coverage can help to cover an insurance claim or damages that are not fully paid by the condo association’s policy.

For example, if insured damage happens to the outside of the building, resulting in $250,000 worth of damages, and the condo association only has $200,000 in coverage for the building, there will be a $50,000 repair bill that will not be covered by the insurance as it exceeds the coverage limit. Each owner in the association will have to cover a certain part of the $50,000. In this case, owners without loss assessment coverage on their insurance plan will have to pay the special assessment out of pocket. Owners who have a loss assessment can file a claim to cover the cost.

Also, if you have loss assessment coverage, it can help pay for your share of the costs if the condo association issues a special assessment to cover the association’s insurance deductible for a covered claim. However, loss assessment coverage does not pay for all assessments. For example, if the homeowners association issues a levy to cover damage that is not insured, loss assessment coverage will not cover the assessment.

How Much Coverage Do You Need?

To help calculate how much loss assessment coverage you need, you will need to check your condo or homeowners association insurance policy. You’ll need to review the coverage limits and whether there are special deductibles for certain hazards. A local insurance agent can help you calculate how much loss assessment coverage is right for you. Loss assessment coverage is very vital in protecting you from unexpected expenses that you may have to cover out-of-pocket. It also offers protection if the condo association has not insured the property properly or has taken a high deductible to save costs.

Do you have more questions about the loss assessment coverage for condos?  If so, then contact the experts at James Page Insurance.  We are ready to assist you with all your home coverage needs today.

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jamespage

Six Helpful Facts on Long Term Care Insurance to Help You Plan for Retirement

Six Helpful Facts on Long Term Care Insurance to Help You Plan for Retirement

The older you get, the more likely it becomes that you may need long-term care. According to the Department of Health and Human Services, approximately seven out of 10 people turning 65 will need long-term care over their lifetime. This makes it necessary to include long-term care insurance when planning for retirement. Long-term care costs can quickly use up one’s savings without insurance.

Purchasing long-term care insurance will help protect your retirement savings from being drained by long-term care costs. This insurance covers long-term care expenses such as nursing home care, in-home care, and other long-term care facilities. There are certain facts about long-term care that you should know to help you plan for retirement. In this article, we’ll list six of them.

Here Is What You Need to Know about Long Term Care Insurance

  1. Medicare Does not Cover Long-term Care

Medicare is a federal health program for people aged 65 or older. If you are eligible for Medicare, you can enroll three months before you turn 65. Medicare helps cover various healthcare costs such as skilled nursing facility care, durable medical equipment, doctor visits, etc. However, many people wrongly assume that Medicare covers long-term care. Medicare only covers in-home or nursing care for a certain number of days, after which it stops providing coverage.

Also, Medicare only covers services that are medically necessary or recommended by a doctor. On the other hand, Medicaid covers nursing homes and other long-term care expenses. The eligibility requirements for Medicaid are different from that of Medicare.

  1. Long-term Care Insurance Plans Can be Costly

It is important to keep this in mind when preparing for retirement. Without long-term care insurance, long-term care costs could put a huge dent in your retirement savings. However, long-term care premiums are on the high side, though pricing depends on age and the type of coverage the plan offers.

  1. Long-term Care Insurance Covers a Variety of Services

Long-term care isn’t restricted to nursing homes. Long-term care involves in-home care or community-based settings and not only nursing home care. Long-term care can offer assistance with daily living activities such as dressing, bathing, eating, etc. Hence, long-term care insurance provides coverage for a wide range of services.

  1. Getting Long-term Care Insurance Becomes Harder with Age

The older you get, the more likely it becomes that you’ll have health issues that can affect your approval for long-term care insurance. According to AALTCI, over half of the applications for long-term care insurance for people aged 75 or older were rejected in 2019. Younger applicants have the lowest rejection rate. It is better to get long-term care insurance while in your 50s to reduce the chances of rejection.

  1. Your Application May Be Denied Due to Pre-existing Conditions

While conditions such as high blood pressure or a previous cancer diagnosis may not rule you out, certain conditions may lead to a denial. For example, if you are using a wheelchair, oxygen equipment, or you need assistance with daily living activities, your application could be denied.

  1. Consider Hybrid Insurance Policies

When looking for long-term care insurance policies, you should consider long-term hybrid insurance. Hybrid policies combine long-term care insurance with life insurance. The premiums can be fixed, leading to lower insurance costs.

These are six of the most important facts related to long-term care insurance that you need to be aware of. For more information about various health insurance plans, contact our experts at James Page Insurance today!

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jamespage

ATV Insurance: A Complete Guide

ATV insurance - A complete guide

Driving off-road vehicles can be a great form of recreation. These special vehicles can also be useful for certain types of jobs like checking cattle on a farm. Operating an all-terrain vehicle (ATV), whether for business or pleasure, may require an ATV insurance policy, depending on your state’s requirements. In many places, it’s not required by law. Here’s a deeper look at what you should know about coverage for an all-terrain vehicle.

What Is an ATV?

The specific legal definition of an ATV depends on the state, although most states have a similar definition. It usually means a motorized vehicle with at least two wheels designed for off-road operation, such as quad bikes. These vehicles are often designed for a solo driver, but some can hold a few passengers. ATVs commonly have two to four wheels, but some have up to six wheels.

Variations of ATVs include utility vehicles (UTVs) and side-by-sides, but again, find out how your state defines an all-terrain vehicle. Although these vehicles are adventurous, they can also be dangerous to drivers, riders, and others. In some cases, these vehicles are expensive to replace, yet the insurance rates are usually lower than most other vehicles.

What Does an ATV Insurance Cover?

An ATV policy covers the same main areas as a motorcycle insurance policy, such as Bodily Injury Liability and Property Damage Liability. Optional coverage is available for medical payments, collision, comprehensive, and accidents caused by uninsured or underinsured motorists. If you build or buy a custom ATV or use custom parts, you can likely add the vehicle to your policy. Just make sure to keep the documentation updated on custom parts.

  • Bodily Injury Coverage- It pays for injuries to accident victims impacted by your vehicle up to the limits specified by the policy. The victim may decide to sue if medical expenses exceed your policy limits, so many policyholders choose higher limits to be safe. This coverage also pays for attorney fees if you are sued for injuring or killing another person while driving your ATV.
  • Property Damage Coverage- It pays for any destruction that your ATV causes to other people’s property, such as their home, vehicles, or land.
  • Bodily Injury Coverage- Many off-road vehicle owners choose limits up to or lower than what they decide for bodily injury coverage. This coverage also pays for legal fees if the victim takes you to court.
  • Collision Coverage- It pays for damage to your ATV due to colliding with another vehicle or overturning. This coverage is often required when a consumer finances or leases an ATV. Some owners with lower-valued vehicles pass on this coverage to reduce their monthly premiums.
  • Comprehensive Coverage- It pays for other types of damage beyond vehicles, such as theft, vandalism or a natural disaster. In other words, if the vehicle is destroyed or disappears, the policy pays for a replacement.

Does Homeowners Insurance Cover ATVs?

Before you rush out to get ATV coverage, ask yourself if you’re only going to use the vehicle on your own property. If so, it might already be insured by your standard homeowners policy, but check with your insurer to make sure. Otherwise, getting ATV insurance coverage is similar to getting coverage for a regular road vehicle, except it usually costs less. However, if you want to drive the vehicle on state or public property, you’ll need special ATV coverage added to your policy.

Does Health Insurance Cover ATV Accidents? 

Your existing health insurance plan can cover ATV accidents in some cases. This scenario may occur if you’re involved in an accident with an uninsured driver or their liability doesn’t cover your medical costs. You’ll first need to find out if your health plan excludes off-road vehicle incidents. Don’t assume your health plan covers it since many policies exclude “hazardous activities.” If you want to have regular ATV experiences, talk with a knowledgeable insurance agent who can provide more clarity and details.

What Does It Cost to Insure an ATV? 

Compared with regular auto insurance, ATV insurance is fairly inexpensive, such as about a dollar per day in many places. Find out from an experienced insurance professional when you ask for a free quote if you can get a discount for bundling multiple policies together.

ATV Insurance Exclusions 

Whether you own or ride an ATV, you need to be aware of scenarios that aren’t covered by the ATV policy. The more a situation presents a risk, the less likely you can find low-cost or any coverage for it. ATV policies only cover certain usages, such as for recreation or commuting. It doesn’t cover use on highways or city streets, as ATVs are usually not allowed on them, other than state parks and a few other government-approved areas.

Hauling an ATV from one location to another by trailer might not be covered in your policy. Another important point to remember about an ATV is that it usually is not covered by a standard car insurance policy.

If you plan to drive or ride an off-road vehicle, check into getting an ATV insurance policy to go with it, especially if you’re pouring thousands of dollars into the investment. Find out what your state requirements are, and then talk with a seasoned insurance pro to learn your specific coverage options. Contact our experts at James Page Insurance to get answers to all your questions about the right ATV insurance coverage.

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