Loss Assessment Policy

A Loss Assessment Policy is an insurance coverage that helps pay for shared damages or expenses when a property is part of a larger community, like a condo or homeowners’ association. If a common area or structure is damaged—such as a building’s roof or pool—and the costs exceed the association’s insurance coverage, this policy can cover your portion of those costs. Essentially, it protects you from unexpected expenses that arise from community-wide damages, ensuring you’re financially covered if your share of the loss is significant.