Real
Estate
Advisor
By Michael Chulak
Attorney at Law

Q. I only recently started to read your real estate column and find it to be of great value. I am president of our homeowners association and would like to distribute copies of past questions and answers to our Board of Directors. Are they available?

A. Yes. They can be found on the following Web site: www.HOAQandA.com. The Web site is updated monthly.

Q. We reside in a townhome which has a master insurance policy. My insurance agent has recommended that we purchase "loss assessment coverage." What is this coverage and what is your recommendation?

A. Loss Assessment Coverage is generally an endorsement to a homeowner’s insurance policy (HO-6). It pays the insured’s share of any assessment levied against unit owners by the association during the policy period up top a specified limit for defined losses.

The policy limits are typically from $1,500 to $50,000.

While policies differ, they usually cover the perils covered under Section I of the policy, bodily injury and property damage losses, losses due to discrimination, and losses resulting from libel and/or slander.

Remember, coverages vary. There is no substitute for consulting with an insurance professional before you purchase coverage. Generally, the cost of these policies is low for the benefits acquired. I definitely recommend the coverage.

Michael Chulak is a partner with Chulak & Shiffman, Attorneys at Law. Questions can be sent to 30343 Canwood St., Suite 203, Agoura Hills, CA 91301. Answers are general in nature. An attorney should always be consulted when legal advice is needed. For more information: www.MTCLaw.com and www.HOAQandA.com.