... and why you may be paying more and getting less
The Insurance Industry has lost billions over the past few years
due to a series of natural disasters and tragedies
and similar to Las Vegas
they don't like to lose money
keep in mind that insurance is designed to mitigate risk
and depending how risky your condo building is
the cost to insure can go up dramatically
the only way to pay for this is to raise the HOA fees
which can make them unaffordable to many owners
some condo associations have made a decision
to carry insurance that is lower than full replacement cost
which means that if there is a disaster where
the building cannot be repaired
and must be demolished and ultimately rebulit
there would not be enough insurance money available
to put up the new building
the owners would then need to pay a special assessment
to complete the new building
and if that is not possible
the owners, in essence, own a share of the dirt where the condo once stood
we go over the nitty gritty details in today show
