Coverage Types
Loss Assessment Coverage
Definition
Coverage that pays for a policyholder's share of a loss assessment charged by a homeowners association (HOA) or condo association when a covered peril damages common areas or when the association's master insurance policy is insufficient to cover a loss. Standard homeowners and condo policies include a base amount, but higher limits are available by endorsement.
In Zach’s Words
“If you live in a condo or HOA community and a big storm damages the roof or the pool, your association's insurance might not cover the full cost. When that happens, they pass a special assessment to every homeowner — sometimes tens of thousands of dollars. Loss assessment coverage on your homeowners or condo policy helps pay your share of that bill. Most people don't even know they have this coverage (or that they need more of it). Check your dec page — the default limits are usually way too low.”
— Zach Nadler, CIO