What is Loss Assessment Coverage?

Loss Assessment is an endorsement on your personal (HO-6) insurance policy designed to protect you from unexpected costs. If your Association suffers a major loss—such as a fire or a significant windstorm—and the master policy deductible is higher than the funds available in the HOA reserves, the Association may assess each unit owner a share of that cost. This coverage helps pay your portion of that assessment, provided the loss itself was caused by a peril covered under your policy.