A condominium owner with an HO6 insurance policy may be able to use their loss assessment coverage to help pay for a deductible assessed by the condominium association. Loss assessment coverage is a type of insurance coverage included in an HO6 policy that helps pay for an assessment made by the condominium association for damages that are not covered by the association's insurance policy.
For example, if a windstorm damages the condominium building and the condominium association's insurance policy has a high deductible, the association may assess each unit owner to help pay for the repairs. If a condominium owner has loss assessment coverage as part of their HO6 policy, they can use this coverage to help pay their portion of the deductible assessed by the association.
It is important to carefully review the specific terms and limits of loss assessment coverage included in an HO6 policy, as coverage limits may vary depending on the policy and insurance company. Some carriers today limit the amount they will pay if the deductible is shared among other owners. This amount may be less than what is shown on your declarations pages from your policy.
If you are unsure about your coverage, you should speak with your insurance agent for clarification and read the policy.
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