A burst pipe on the fourth floor, a roof that fails in a hailstorm, a fire that starts in one unit and spreads. In a condominium, a big loss is shared. When the association’s master policy and reserves do not cover all of it, Tennessee law says who pays: under Tenn. Code § 66-27-413, the cost of repair or replacement in excess of insurance proceeds and reserves is a common expense. Common expenses get assessed to owners, and under § 66-27-415 an unpaid assessment becomes a lien on your unit.
| Rule in the Tennessee Condominium Act of 2008 | What it says |
|---|---|
| § 66-27-413(h)(2) | Repair costs beyond insurance proceeds and reserves are a common expense |
| § 66-27-414(b) | Common expenses are assessed to all units by the declaration’s allocations |
| § 66-27-414(c)(3) | Where the declaration permits, insurance costs may be assessed in proportion to risk |
| § 66-27-414(e) | An expense caused by one owner’s misconduct may be assessed to that owner’s unit alone |
| § 66-27-414(g) | For residential units, the board may levy assessments at any time to preserve the building’s physical integrity |
| § 66-27-415(a) | The association has a lien from the time an assessment is due; installments make the full amount a lien at the first installment |
| § 66-27-415(e) | The lien ends unless enforcement starts within six years |
Source: Tennessee Code §§ 66-27-413, 66-27-414, and 66-27-415.
How a loss becomes your bill
Section 66-27-414 says common expenses are generally assessed against all units according to the allocations in the declaration. A large uninsured repair, or a master-policy deductible the association has to absorb, can turn into a special assessment split among owners. The statute also lets the board of a residential condominium levy assessments at any time to preserve the physical integrity of the building, as a single assessment or in installments the board sets. For how the master policy is built, see Tennessee’s condo law sets an 80% master-policy floor, and your HO-6 still has to fill the gaps.
When the bill lands on one unit
If a common expense is caused by the misconduct of a unit owner, § 66-27-414(e) lets the association assess that expense exclusively against that owner’s unit. Where the declaration permits, insurance costs can also be assessed in proportion to risk. Read your declaration and bylaws to see how your association handles deductibles and charge-backs after a loss that starts in a unit.
What happens if an assessment goes unpaid
Under § 66-27-415, the association has a lien on a unit for any assessment or fine from the time it becomes due, and the lien may be foreclosed by judicial action. If the assessment is payable in installments, the full amount is a lien from the time the first installment comes due. Past-due assessments bear interest at a rate the association sets, within a state cap. A court judgment under the lien section must include costs and reasonable attorney’s fees for the prevailing party. The lien is extinguished unless enforcement starts within six years.
Where an HO-6 fits
Section 66-27-413(f) says an association policy does not prevent a unit owner from buying insurance for the owner’s own benefit. Many HO-6 policies offer an option often called loss assessment coverage, which may help pay an owner’s share of certain assessments after a covered loss. Limits, triggers, and exclusions vary by policy, so no assessment is guaranteed to be paid. Ask your agent how your HO-6 treats assessments tied to the master-policy deductible. Related reading: Tennessee condo law says your HO-6 has to cover the upgrades the master policy can skip. and Understanding Home Insurance Deductibles in Tennessee: How to Choose the Right Amount and Avoid Costly Surprises.
Before you buy or renew
- On written request, § 66-27-415(h) says the association must give a unit owner or mortgage holder a statement of unpaid assessments within seven days, and that statement binds the association.
- Ask for the master policy’s deductible and the association’s reserve balance.
- Associations that collect assessments face a fidelity bond requirement starting in 2027: Starting Jan. 1, 2027, Tennessee HOAs that collect assessments must carry a fidelity bond.
- If you cannot live in your unit during repairs: TDCI glossary: loss of use covers extra living costs after a home disaster.
This article is informational only and is not legal advice. It does not promise coverage, eligibility, or an assessment outcome. Your declaration, bylaws, policy forms, and Tennessee law control.
Related reading from All Seasons
- Tennessee’s condo law sets an 80% master-policy floor, and your HO-6 still has to fill the gaps.
- Tennessee condo law says your HO-6 has to cover the upgrades the master policy can skip.
- Starting Jan. 1, 2027, Tennessee HOAs that collect assessments must carry a fidelity bond.
- Understanding Home Insurance Deductibles in Tennessee: How to Choose the Right Amount and Avoid Costly Surprises
- TDCI glossary: loss of use covers extra living costs after a home disaster.
Free policy review
All Seasons Insurance Group offers a free personal policy review. Call 865-263-1400 or visit asigtn.com/get-a-quote/. This article is informational only and does not promise coverage or eligibility; your policy forms control. Seasons change. So should your coverage.
Who pays for condo damage the master policy does not cover in Tennessee?
Tenn. Code § 66-27-413 says the cost of repair or replacement in excess of insurance proceeds and reserves is a common expense, which is assessed to unit owners.
How are condo common expenses split?
Section 66-27-414 says common expenses are generally assessed against all units according to the allocations in the declaration.
Can my association bill only my unit?
In some cases. If a common expense is caused by a unit owner’s misconduct, § 66-27-414(e) lets the association assess it exclusively against that owner’s unit.
Can the board levy a special assessment on its own?
For residential units, § 66-27-414(g) gives the board power at any time to levy assessments to preserve the physical integrity of the condominium, notwithstanding contrary declaration provisions.
What happens if I do not pay a condo assessment?
Section 66-27-415 gives the association a lien on the unit from the time the assessment is due, and the lien may be foreclosed by judicial action. A judgment must include costs and reasonable attorney’s fees for the prevailing party.
Does an HO-6 policy pay condo assessments?
Many HO-6 policies offer loss assessment coverage, but limits and conditions vary, and no assessment is guaranteed to be paid. Check your policy forms with your agent.
How do I find out what is owed on a unit?
Section 66-27-415(h) says the association must provide a written statement of unpaid assessments within seven days of a written request, and the statement is binding on the association.
How can All Seasons help after reading this?
Call 865-263-1400 or visit asigtn.com/get-a-quote/ for a free personal policy review. Informational only; no coverage promises. Seasons change. So should your coverage.
