Loss Assessment Coverage

Loss Assessment Coverage is an insurance provision that helps protect homeowners in a condominium or homeowners association from unexpected costs due to shared losses. If your association faces a significant financial loss—like damage from a storm, liability claims, or legal fees—and assesses all members to cover those costs, this coverage helps pay your share. It's particularly valuable when the regular association insurance isn't enough to cover all expenses, ensuring you won’t face a large financial burden unexpectedly. Essentially, it safeguards against shared costs among community members, offering peace of mind in collective living situations.