Loss Assessment
What is it? A loss assessment is an expense you may incur as a member of a condominium or co-op owners association. The association itself typically owns an insurance policy, but can assess its members for damage or liability claims that exceed its own policys limits. For example, your buildings roof needs to be replaced after a violent storm. The new roof costs $500,000. Unfortunately, the associations policy limit for damage to the property is $250,000. The cost difference would be split among the members of the association. Your own loss assessment coverage will pay for assessments the association makes against you because it is underinsured. The standard limit in the policy is $1,000, but you can purchase amounts up to $50,000.Added By: Gracie
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