What is loss assessment coverage on a Georgia condo policy?

Loss assessment coverage is part of your Georgia condo policy that helps pay your share when the homeowners association charges all unit owners a special assessment after a covered loss. If the HOA’s master policy falls short on a claim, the association can split the remaining cost among owners, and this coverage steps in to pay your portion up to its limit.

Here is why it matters. As a condo owner, you are financially tied to the building through your association. When a major loss exceeds the master policy limit or falls under its deductible, the HOA can pass that cost to owners. Without loss assessment coverage, you pay your assessment out of pocket.

For example, a fire damages the lobby and roof of a condo building in Atlanta. The repairs exceed the master policy by $120,000, and the HOA divides that among 40 units. Your share is $3,000. With loss assessment coverage, your condo policy can pay that $3,000, minus any small deductible, instead of you writing the check yourself.

A few points to keep in mind:

• Default limits are often low, sometimes only $1,000 to $5,000, and a higher limit raises the share of a special assessment the coverage can pay.
• It can also apply to assessments for covered liability claims, not just property damage.

To see how this fits your overall protection, review our condo insurance overview. To set the right loss assessment limit for your building, get a free coverage review at /coverage-review/.