Loss Assessment Coverage

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.