I own a condominium and was told I need loss assessment coverage, what is that?
In the event of a claim to common areas in your condominium or homeowners association, the association may assess each unit owner with a portion of the monetary damages or deductible. Loss assessment pays for the damages if the damage is caused be a covered cause of loss. An example would be if a tree fell on some fencing damaging the fence. Your association’s insurance policy has a $25,000 deductible. The cost to repair the fence is $15,000, below the Association’s policy deductible. The association is comprised of 5 units. Each unit owner would be assessed $3,000 to cover the repairs.
