Suppose you live in a Homeowner’s Association (HoA) type of
community and the HoA decides to assess each of the homeowner’s. These assessments can happen as a results of
hurricane damage that affects the entire community, or even for non weather
events like new roofs, property upgrades, or common maintenance.
Most homeowner policies have $2000 of Loss Assessment Coverage. This means that your insurance company will
pay up to $2000 for any HoA assessment.
Good news, right? Well, the Loss
Assessment coverage is also subject to your All Other Peril (AOP)
deductible. Most AOP deductibles are
$1000-$2500.
So, let’s say you have $2000 Loss Assessment coverage and
your HoA sends you an assessment for $2000.
Let’s assume you have a $1000 AOP deductible. You can submit a claim and your insurance
company will pay $1000.
