New Company Insures Owners Against Condo Special Assessments

October 10, 2025

Picture it: You're at a condo board meeting discussing a possible condo assessment, and an owner says, “But I'm about to list my property! I'll never be able to sell!”

In this week's tip, we give you a heads up about a new product that might help you ease those sellers' minds, plus help you collect assessments in the long run.

The special assessment warranty was launched by a REALTOR^® who all too often saw potential buyers shy away from condos and townhomes out of fear of getting hammered with special assessments. The product is much like a home warranty but for special assessments. If a policy holder has to pay a special assessment, the warranty covers it—with some caveats.

“The product grew from my own frustration,” says Rhett Graves, Chicago-based founder and CEO of HOA Warranty and a residential real estate agent at Online Realty Professionals. “As a real estate agent, you want to problem solve for your clients. But when it came to townhouses and condos, I'd run into this blind spot. You're beholden to the state of the building, but you have nothing cost effective to respond to the potential for a special assessment, whether that's a real or perceived  problem.”

Graves has seen too many potential buyers of condos and townhomes make an offer, get information on the condo's financials, and then balk at seemingly low reserves. “Without context, those reserve numbers don't mean much,” he explains. “But often buyers wanted to back out, and sellers would be devastated.

“Sellers would ask me: ‘What if this happens again on the next offer?'” adds Graves. “I didn't like that feeling of saying, ‘We don't know. Let's hope it doesn't.' With this product, sellers have more control over negotiations.”

A special assessment warranty is much like a home warranty. Graves says purchasers pay a premium, and the policy pays out if there's a special assessment. The product, launched in March, is available for purchase only at the point of sale, by either a buyer or seller. “So far, it's about 50-50 of sellers and buyers purchasing the warranties,” says Graves, “if not a little more on the buyers' side.”

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Housz, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Housz, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

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