What is loss assessment coverage?
If you own a home or condo and are a member of a homeowners or condominium association, this coverage is especially important to you. Homeowners/condo associations have the ability to charge (assess) each property owner fees to cover losses to common areas or to meet the association policy deductibles. In the event you are assessed as a property owner, the loss assessment coverage can be used to meet that obligation. Typically, policies include $1,000 or $5,000 of loss assessment coverage; however, this limit can be increased to as much as $50,000.
