---
title: "Loss Assessment Coverage: Condo and HOA Assessments | Riskado"
description: "Loss assessment coverage can pay your share of a condo or HOA assessment after a covered loss to common property. See a worked example and the limits."
url: "https://riskado.com/insurance-terms/loss-assessment-coverage/"
lang: "en"
published: "2026-03-27"
modified: "2026-10-01"
image: "https://riskado.com/og/default.jpg"
alternates:
  es: "https://riskado.com/es/terminos-de-seguros/cobertura-de-evaluacion-de-perdidas.md"
---

# Loss assessment coverage

[Home and Renters](https://riskado.com/home-and-renters-insurance/) · Updated Oct 1, 2026

Loss assessment coverage can pay your share of a condominium, co-op or homeowners association assessment after a covered loss damages common property or creates association liability. Your policy limit, deductible and exclusions, plus the association's documents, decide the payment, and earthquake and flood assessments commonly need separate coverage.

Also called: loss assessment

When your condo or homeowners association bills every owner for damage its own insurance did not fully pay, loss assessment [coverage](https://riskado.com/insurance-terms/coverage/) on your personal [policy](https://riskado.com/insurance-terms/policy/) may reimburse your share. The [New York Department of Financial Services (opens in a new tab)](https://www.dfs.ny.gov/consumers/help_for_homeowners/homeowner_tenant_guide) describes it as covering assessments the association makes because of a covered loss, such as a fire affecting a common area. It does not pay every special assessment: the assessment has to trace back to a loss your policy covers, and it pays only up to your loss assessment limit. Start by finding the coverage and its dollar limit on your [declarations page](https://riskado.com/insurance-terms/declarations-page/).

## How an assessment claim works, with an example

The association's master policy pays first, and any shortfall is divided among owners according to the association's documents. The figures below are an illustration from [Allstate's loss assessment coverage page (opens in a new tab)](https://www.allstate.com/resources/condo-insurance/condo-loss-assessment-coverage), not a national average or a prediction.

Illustrative condo assessment after a covered loss

Hover or tap a row to highlight it.

| Item | Amount |
| --- | --- |
| Covered damage to the building | $550,000 |
| Association's building insurance limit | $500,000 |
| Unpaid balance | $550,000 − $500,000 = $50,000 |
| Equal share for each of 50 owners | $50,000 ÷ 50 = $1,000 |
| You pay with no applicable coverage | $1,000 |
| You still owe with a $500 loss assessment limit | $1,000 − $500 = $500 |

With a limit of at least $1,000, you can submit a [claim](https://riskado.com/insurance-terms/claim/) for the full share, subject to your policy's terms, [deductible](https://riskado.com/insurance-terms/deductible/), [exclusions](https://riskado.com/insurance-terms/exclusion/) and proof requirements. If the assessment were $2,000 and your limit $1,000, you would still owe $1,000.

## Limits and options that change the payment

A $1,000 limit is a common starting point on an HO-6 condo policy, according to [State Farm (opens in a new tab)](https://www.statefarm.com/simple-insights/residence/what-is-ho6-insurance), and some policies include a base amount while others offer the coverage only by endorsement.

- **Higher limits by endorsement.** Scheduled amounts such as $2,000, $5,000, $10,000 or more may be available, depending on the insurer and state filing. Higher limits generally raise the premium, and the insurer can quote the difference.
- **Property assessments.** These generally require direct physical loss to property owned by all members collectively, caused by a peril your own policy covers, as one [published policy filing (opens in a new tab)](https://delivery.contenthub.allstate.com/api/public/content/73b5c32c9c724a3f8b80c1afa127c100?v=66354e46) words it. A policy that covers [named perils](https://riskado.com/insurance-terms/named-perils/) only responds to assessments caused by those perils.
- **Liability assessments.** Some forms give a separate or related limit for assessments arising from bodily injury or property damage claims against the association.
- **Association deductible assessments.** A deductible assessment is what the association charges owners to cover its master-policy deductible after a covered loss. Some forms include it within the loss assessment limit, while others apply a sublimit or special condition.
- **Earthquake loss assessment.** This is commonly separate from ordinary HO-6 coverage. California Earthquake Authority condo policies offer loss assessment limits up to $100,000, with deductibles of 5% to 25% of the limit, according to the [California Department of Insurance (opens in a new tab)](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/eq-ins.cfm).

The coverage is separate from [loss of use](https://riskado.com/insurance-terms/loss-of-use/), which pays additional living expenses when your home cannot be lived in after a covered loss, according to the [NAIC (opens in a new tab)](https://content.naic.org/consumer/homeowners-insurance.htm).

## Where you will see it

Loss assessment coverage is most common on HO-6 condominium unit-owner policies. It can also appear on [homeowners insurance](https://riskado.com/insurance-terms/homeowners-insurance/) for a house in an HOA or community association, on some renters forms, on some businessowners condo unit-owner endorsements and on separate condo earthquake policies. Look for it in the additional coverages section, the coverage schedule, the declarations page or an endorsement. It can also come up on a quote, binder or renewal offer, and on the association's assessment notice, a proof-of-loss request or a claim letter. It is not an auto, life, health or pet coverage.

## How Connecticut and New York create the assessment

State condominium laws decide what an association can pass on to owners, which is what this coverage responds to. Neither state requires you to buy a particular loss assessment limit.

In Connecticut, a condominium association must carry a master policy for fire, extended coverage and additional perils on the common elements, with deductibles the board considers appropriate, and must give owners written notice of the insurance and later changes, under [Conn. Gen. Stat. § 47-83 (opens in a new tab)](https://cga.ct.gov/Current/pub/chap_825.htm#sec_47-83). In a common interest community, repair costs above insurance proceeds and reserves are a common expense, including any excess caused by an insurance deductible, under [Conn. Gen. Stat. § 47-255 (opens in a new tab)](https://www.cga.ct.gov/current/pub/chap_828.htm#sec_47-255).

In New York, a condominium board must insure the building when the declaration, bylaws or a majority of owners require it, and must notify owners of that insurance, while each owner keeps the right to insure the unit separately, under [N.Y. Real Property Law § 339-bb (opens in a new tab)](https://www.nysenate.gov/legislation/laws/RPP/339-BB). Damage must generally be repaired with insurance proceeds and any deficiency is a common expense, under [§ 339-cc (opens in a new tab)](https://www.nysenate.gov/legislation/laws/RPP/339-CC), shared among owners by their common interests under [§ 339-m (opens in a new tab)](https://www.nysenate.gov/legislation/laws/RPP/339-M).

## Questions to ask an agent or insurer

1.  What is my exact loss assessment limit, and is it shared with another limit? That sets the most you can be paid.
2.  Does the coverage include an assessment for the association's master-policy deductible? Some forms include it and others cap it with a sublimit.
3.  Does it apply to liability assessments as well as property damage assessments? Some forms treat the two differently.
4.  Are earthquake, flood, wind, water or other major hazards excluded? Standard residential policies generally exclude earthquake and flood.
5.  Which association documents will you need for a claim? The declaration, bylaws, assessment notice, board resolution, master-policy declarations, deductible details and proof of payment can establish your share.

## Frequently asked questions

Short answers on common assessment questions.

### Does loss assessment coverage pay an HOA special assessment?

It may pay an assessment tied to a covered loss, subject to your limit, deductible and exclusions. Assessments for routine maintenance, reserve shortfalls, upgrades and excluded causes of loss may not qualify, and you would owe those yourself.

### Is loss assessment coverage in every condo policy?

No. Some HO-6 policies include a base amount and others offer it as an optional endorsement, so the declarations page and endorsements decide.

### Does it cover an assessment after a flood or earthquake?

An ordinary condo policy generally excludes earthquake and flood, so an assessment after those events may need separate coverage. Separate earthquake coverage can carry its own loss assessment limit and deductible.

## Related terms