Loss Assessment (HOA/Condo)
Definition:
Coverage that pays a condo or homeowners association’s special assessment after a covered loss.
Explanation:
If shared property is damaged and the association charges unit owners for repairs, this coverage helps pay your share.
Example:
If the condo building’s roof is destroyed by hail and the HOA charges each unit owner $5,000, loss assessment coverage may cover it.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.