9is question was answered based upon current rules, regulations & statutes in effect on March 3, 2020
Question, if a condo master policy includes earthquake coverage but the HO6 policy does not, if there was an earthquake loss, would the loss assessment apply or does it have to be a covered loss…. Meaning does the HO6 have to have earthquake as well to be covered?
Hope that makes sense and you can clarify.
Irene Morrill: An unendorsed HO6 – any edition for loss assessment states:
The assessment must be made as a result of direct loss to property, owned by all members collectively, of the type that would be covered by this policy if owned by you, caused by a Peril Insured Against under Coverage A, other than:
(1) Earthquake; or
(2) Land shock waves or tremors before, during or after a volcanic eruption.
The HO-6 needs HO 04 54 – earthquake coverage endorsement AND a separate loss assessment endorsement HO 04 36 Earthquake loss assessment.
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