If you own a condo or live in a community with a homeowners association (HOA), you probably know that the association carries its own insurance policy. But did you know that if the HOA suffers a major loss, you could be responsible for part of the cost?

That’s where Loss Assessment Coverage comes in. Without it, you could be stuck paying thousands of dollars out of pocket if your association’s master policy isn’t enough to cover a claim.

What Is Loss Assessment Coverage?

Loss assessment coverage helps protect you, the unit owner, when your HOA or condo association assesses members for costs related to:

✅ Property Damage – If the association’s master policy doesn’t fully cover damage to common areas (e.g., roofs, pools, clubhouses), unit owners may be required to split the remaining costs.

✅ Liability Claims – If someone is injured in a shared space (like a parking lot or lobby) and the association’s policy doesn’t fully cover it, you could be assessed part of the damages.

✅ Deductibles on the Association’s Policy – Many HOAs have high deductibles ($10,000–$50,000+). If a claim is filed, unit owners may have to pay a portion of that deductible.

✅ Storm or Disaster Damage – If a major storm causes damage that exceeds the association’s coverage limits, owners may be required to cover the difference.

Why Is This Coverage Important?

🚧 Most Condo & HOA Policies Have Gaps – Even if your association has insurance, it may not be enough to cover all potential losses.

🚧 Assessments Can Be Expensive – If your HOA splits a $100,000 uninsured loss among 50 unit owners, you could owe $2,000 or more.

🚧 It’s Affordable Protection – Adding Loss Assessment Coverage to your home, condo, or renters policy costs just a few dollars per year, but could save you thousands.

How Much Coverage Do You Need?

Many condo and homeowners policies include a basic limit of $1,000, but this may not be enough. Some policies allow you to increase limits to $5,000, $10,000, or more, ensuring better protection.

Real-Life Example

🏢 A condo association’s clubhouse roof was severely damaged in a storm. The master policy covered most of the repairs, but the association had a $50,000 deductible. The cost was split among 100 unit owners, leaving each responsible for $500.

✅ With Loss Assessment Coverage: The unit owner’s insurance covered the full $500 assessment.
❌ Without It: The owner would have had to pay out of pocket.

Are You Protected? Let’s Review Your Policy!

Not all condo and homeowners insurance policies include adequate Loss Assessment Coverage. At Rathbun Insurance, we can help you ensure you’re fully protected.

📞 Call us today to review your policy and add this essential coverage!