Condo Loss Assessment Coverage

The Condo Loss Assessment Clause of an HO4 Policy (Condo Owners Policy) helps to protect the owner in the event an assessment is made by the HOA to the owners of units in the complex in the event of a coverered loss.

All HOA’s are required to carry Property Insurance and Liability Coverage on their complex. Often the deductible is set high due to the relative infrequency of claims to help in saving premium dollars. These deductibles can be a percentage of the building coverage or a flat dollar amount.

If the Condo Loss Assessment Endorsment is placed onto a condo policy, the insured can file the claim with their Condo Insurance Carrier for any claim filed by the HOA under a named peril. The condo owner is then only responsible for the deductible on the HO4 policy, potentially savings thousands of dollars.