Morrison Mahoney partner Bill Schneider was recently quoted in Massachusetts Lawyers Weekly regarding a loss assessment insurance coverage dispute, Brennan v. Metropolitan Property and Casualty Insurance Company, before the U.S. District Court for the District of Massachusetts.
The court ruled that a limitation provision capping a condo owner’s loss assessment coverage for damage to common areas at $50,000 per loss was meant to encompass benefits paid during previous policy periods but emanating from the same incident.
Schneider noted that the ruling will be helpful given how few loss assessment cases there are nationwide. “An ounce of prevention is worth a pound of cure,” he said. “Given the nominal premium to increase coverage beyond base limit, prudence dictates that those who own condominiums may appropriately manage loss assessment risk by maintaining an increased limit, always.”
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