Loss assessment coverage in a condo (HO-6) policy pays your portion when the association assesses all owners for a covered loss — like damage to common areas or a liability claim that exceeds the master policy.
Important Add-On
By the Home & Dime Editorial Team · Updated 2026
How it works
If the HOA’s master policy falls short on a covered loss, it can assess each owner. This coverage pays your share, up to your loss-assessment limit.
Set an adequate limit
Default limits (e.g., $1,000) are often too low — many owners raise it to $50,000 or more.
Common exclusions
- Assessments for non-covered causes
- Routine HOA fee increases
- Assessments above your limit
Tips
- Check your loss-assessment limit — raise it if low.
- Understand what your master policy covers.
- Ask your HOA about its deductible.
Frequently asked questions
Is default coverage enough?
Often not — consider raising the limit.
What triggers an assessment?
A covered loss the master policy doesn’t fully pay.
Related guides
Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.
Part of our Condo Insurance guide
← Condo Insurance: full guide · All condo insurance guides · Glossary
Leave a Reply