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As a condo owner, you share both ownership\u2014and legal responsibility\u2014with the other individual unit owners for the condominium’s common areas (for example, a swimming pool, fitness room, rooftop terrace, elevators, etc.). While your condominium corporation may have adequate coverage, loss assessment coverage helps to protect you financially if there is a liability claim made against your condominium corporation that exceeds the condominium corporation’s liability coverage limits.<\/p>\n\n\n\n
Your policy will pay up to the total limit of your liability coverage for your share of special assessments if the assessment(s) meet the conditions outlined in your policy.<\/p>\n\n\n\n
We will not pay more than $25,000 for that part of an assessment made necessary by a deductible in the insurance policy of the condominium corporation.<\/p>\n\n\n\n
Example of Loss Assessment Coverage for Liability<\/strong><\/p>\n\n\n\nA man who was seriously injured after falling down slippery stairs in a condominium building’s lobby, sues the condominium corporation for $3 million and wins the suit. The condominium corporation carries only $2 million in liability coverage. To make up the $1 million difference, the condominium association levies a special assessment against each unit owner. Because there are 50 unit owners, each owner must pay $20,000 towards the suit (50 owners x $20,000 = $1,000,000). Loss assessment coverage would pay, up to the specified liability coverage limit, the $20,000 portion of the special assessment.<\/p>\n<\/div><\/div><\/div><\/div>\n\n\n\n