Does condo insurance cover HOA special assessments in Georgia?

Yes, condo insurance can cover HOA special assessments, but only through a specific part of the policy called loss assessment coverage, and only within its limit. Without that coverage or with too low a limit, a special assessment can hit you out of pocket.

Here is how it works. When a covered loss damages the condo association’s shared property and the cost exceeds the master policy limit, or falls under the master policy’s deductible, the association can divide the shortfall among all owners as a special assessment. Loss assessment coverage on your unit owner policy steps in to pay your share, up to the limit you carry.

A few important points for Georgia condo owners:

• Loss assessment usually applies only when the underlying cause is a covered peril, such as a fire or storm, not routine maintenance or upgrades the HOA decides to fund.
• Default limits are often low, sometimes $1,000 or $2,000, which may not be enough.
• Many policies offer a separate, higher loss assessment limit specifically for the master policy deductible.

Here is an example. A storm damages the roofs across a Savannah condo community. The repair exceeds the master policy limit, and the association assesses each owner $6,000. An owner carrying only $1,000 in loss assessment pays $5,000 themselves, while a neighbor who raised the limit to $10,000 is fully covered.

Review your master policy deductible and assessment history with us to set the right limit. See our condo insurance page, and request a free coverage review to protect against an unexpected assessment.