Who bears the cost for excessive judgment amounts in claims?

Homeowners bear the cost for excessive judgment amounts in claims because they typically are the ones who are ultimately responsible for their financial obligations related to the community association or property. In the context of community associations, homeowners may have to cover losses that exceed the amount provided by insurance after a claim. This means that if a judgment exceeds the insurance coverage limits, the homeowners may face direct financial impacts, either through higher assessments or special assessments imposed to cover the additional costs.

Additionally, insurance policies often have limits on the coverage provided, and homeowners need to be aware of these limits when considering the financial implications of potential legal judgments against the association. Thus, in situations where judgments are excessive and surpass what the insurance can cover, it typically falls to the homeowners to fund the difference through their assessments or other means.