Loss Assessment coverage is a coverage that is uniquely designed for unit owners that belong to condo associations. This portion of the policy is designed to pay for unforeseen assessments that your association may impose upon its members. The amount of coverage however must be determined by you, so it is vital that you speak with your Lott & Gaylor representative to ensure you are purchasing an appropriate amount of coverage.
Examples of reasons your association could assess you are:
Major windstorm damage to the association buildings that is not fully covered by the associations insurance.
An injury on the common association premises (i.e. Pool) that results in a court award higher than the limit of liability carried by the association.