Re: Loss Assessment Endorsement on your Homeowner’s Insurance

Dear Yosemite Village Homeowner:

We trust that you received advice to carry Homeowner’s Insurance for your property in our community.

With this letter, the Board of Directors would like to remind you of the importance to carry the “Loss

Assessment Endorsement” on your homeowner’s Insurance. “Loss Assessment” coverage is insurance

coverage that you must purchase from your own insurance company, and is independent of the HOA


As a homeowner, you will greatly benefit from having loss assessment coverage if the Yosemite Village HOA has to file a claim with the HOA insurance, for instance, if we had a house fire, hail damage, or a liability claim. While the HOA insurance would cover a significant portion of the incurred cost, there will at least be a deductible amount that is not covered. Under the authority granted to the Board of Directors in our governing documents, costs that are not covered by the HOA insurance can and will be transferred to the homeowners. Under our current HOA insurance policy, the deductible amount is $3,652 per unit, and each homeowner will be responsible to pay this amount. The loss assessment endorsement on your homeowner’s insurance policy should be structured such that it covers at least a minimum of $10,000.

We suggest you to do the following for yourself to ensure you have sufficient coverage:

  1. Confirm that you have, or obtain, “loss assessment endorsement” on your homeowners insurance. The minimum endorsement coverage should be $10,000.

  2. Get clarification on how loss assessment coverage is handled by your insurance. Specifically find out from your insurance agent: a) If there is a sublimit in the event your loss assessment coverage is used to pay for your share of the HOA’s insurance deductible. b) What your deductible is for a loss assessment claim. c) Whether a loss assessment claim will result in an increase in premium for you.

Please understand that any deductible you may incur, all costs above your sublimit for a loss assessment claim, and any resulting increases in premium are your responsibility. If you choose to not carry a loss assessment endorsement, all transferred costs will be your personal responsibility.

We appreciate your immediate action on our request, and thank you for your collaboration.


Yosemite Village Board of Directors


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