What is Loss Assessment Coverage?

I am buying a condo and looking for condo unitowners insurance (HO6 policy). What is Loss Assessment coverage? Can I use it to pay any special assessments imposed by HOA e.g., when they have to do repair the roof and/or building siding etc.?

One thought on “What is Loss Assessment Coverage?

  1. littleadv

    You should ask your insurance agent with regards to the specific policy (all the terms are defined in each policy, and may differ). Generally it covers the special assessment HOA imposes when there’s a loss on a common property (what you said).

    Here’s a quote from State Farm, check your own insurer for definition applicable to your policy:

    Loss Assessment

    Coverage D

    This valuable condo insurance coverage is uniquely designed for owners
    in condominiums/ associations. It recognizes the potential for owners
    to be assessed for certain kinds of loss. Here are examples of
    circumstances that might require the condominium association to assess
    all unit owners:

    • Someone is seriously injured on common property (perhaps at a swimming pool) and the courts award a judgment that’s higher than the
      amount of liability coverage provided by the condominium/association
    • Major damage occurs to commonly owned buildings and it is not fully covered by insurance.

    In either case (and other similar cases), loss assessment coverage
    would pay your share (up to stated amount). You should review the need
    for this coverage with your agent and buy an appropriate amount of

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