What is Loss Assessment coverage?It is protection Condominium Unit Owners should include in their policy for coverage against claims with respect to the Condo building or the common areas.

Most Condo Unit Owners will purchase a Condo Policy for protection to the inside of their unit (Betterments & Improvements), and perhaps for incidents outside of their personal unit. However, sometimes these claims may exceed the policy limits and the condo unit owners may be asked to make up the difference out of their own pocket. The Condo Loss Assessment coverage can help to avoid making those out of pocket payments when a common area needs the assistance from the unit owners.

Example:
Condo building suffers lightning damage estimated at $550,000. Master policy only covers a limit of $500,000.

The extra $50,000 would be divided among the 40 unit owners (for example).

Each unit owner would then have to pay $1,250 to make up for the difference.

Contact us if you would like us to audit your current policy or provide terms for a future policy.