Loss Assessment Coverage: The Unsung Hero of Condo Life
Most condo owners don't know this coverage exists until they get the bill. Here's what you need to know.
What Is an HO6 Policy?
An HO6 is a condo or townhome owner's insurance policy. It covers the interior of your unit, your personal property, personal liability, and — crucially — loss assessments from your HOA. Think of it as your personal shield within the shared community.
What Is Loss Assessment Coverage?
When your condo association's master policy doesn't fully cover a loss — storm damage, liability claims, deductible shortfalls — the HOA can assess each unit owner for their share. Loss assessment coverage on your HO6 policy helps pay that bill, so you're not writing a $10,000–$50,000+ check out of pocket.
Why Does This Matter Right Now?
Most condo owners don't know this coverage exists until they get hit with an assessment. A standard HO6 often includes only $1,000–$2,000 in loss assessment coverage by default. You can — and should — increase it. It's one of the cheapest endorsements on your policy.
