I am buying a condo and looking for condo unitowners insurance (HO6 policy). What is Loss Assessment coverage? Can I use it to pay any special assessments imposed by HOA e.g., when they have to do repair the roof and/or building siding etc.?

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You should ask your insurance agent with regards to the specific policy (all the terms are defined in each policy, and may differ). Generally it covers the special assessment HOA imposes when there's a loss on a common property (what you said).

Here's a quote from State Farm, check your own insurer for definition applicable to your policy:

Loss Assessment

Coverage D

This valuable condo insurance coverage is uniquely designed for owners in condominiums/ associations. It recognizes the potential for owners to be assessed for certain kinds of loss. Here are examples of circumstances that might require the condominium association to assess all unit owners:

  • Someone is seriously injured on common property (perhaps at a swimming pool) and the courts award a judgment that's higher than the amount of liability coverage provided by the condominium/association policy.
  • Major damage occurs to commonly owned buildings and it is not fully covered by insurance.

In either case (and other similar cases), loss assessment coverage would pay your share (up to stated amount). You should review the need for this coverage with your agent and buy an appropriate amount of coverage.

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    Also understand what isn't covered. An assessment for a new roof that was 20 years old, might not be covered because they should have been holding money in reserve for the repair. The insurance company might also require that the amount be a separate assessment, not just an increase in the monthly fee. Oct 16, 2013 at 0:54
  • Exactly. Its not for regular and ordinary repairs, its for major loss - roof damaged by a tornado, someone drowned and there's a liability payment in excess to the HOA coverage, etc. Not something that could have and should have been planned for ahead of time.
    – littleadv
    Oct 16, 2013 at 1:27

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