Our HO 00 06 10 00 insured lives in a large condo complex that suffered almost total devastation from a hurricane. The windstorm deductible on the condo association's master policy is 2 percent. In the case of this loss, the deductible to the association will be $200,000.

The way the condo bylaws and declaration are written, our insured needs no coverage for real property; thus, we sold him only coverage C.

As expected, the association made an assessment to all unit-owners to cover the amount of the master policy deductible. We told our client that he had $1,000 for loss assessment as an additional coverage under the HO-6. However, the insurer is denying coverage because he did not purchase any coverage A.

We think they're wrong. What's your opinion?

Puerto Rico Subscriber

A condominium unit-owner does not have to carry coverage A in order for loss assessment coverage to apply. The coverage applies as long as the loss is caused by a coverage A peril. Because wind is a coverage A peril, loss assessment coverage would apply for your client's share of the master policy 2 percent windstorm deductible.

 As you mentioned, the coverage contained in the policy is limited to $1,000 per assessment. If more loss assessment coverage is desired, it may be purchased on form HO 04 35 10 00.

 However, it should be pointed out that even if additional coverage is purchased, the policy will still pay a maximum of $1,000 toward the insured's share of any master policy deductible. In the case of this association—with a windstorm deductible of $200,000—if there aren't at least 200 unit-owners in the complex, all of whom have the $1,000 coverage, your insured must make some provision for covering any assessment in excess of what his unit-owner's policy covers.

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