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"What is Loss Assessment Insurance Coverage, and Why Do I Need It?"

Did you know that in the event of an insurance claim, Community Associations reserve the right to assess its unit owners the cost of the Association’s insurance deductible, as well as the cost of property damages that exceed the master policy’s coverage limits?


Loss assessment coverage is designed to protect multifamily unit owners in the event that they are assessed all or a portion of these insurance claim related expenses. It covers the cost of the assessment, leaving the unit owner responsible only for his or her policy’s property deductible.


Most loss assessments that are being charged to homeowners due to hail claims are between

$8,000 and $15,000. The cost of loss assessment coverage is very low. Oftentimes less than $50 per year for a $25,000 limit. This coverage is far too inexpensive and important not to carry!


This coverage is available for purchase on most personal condominium and townhome insurance policies – more commonly referred to as HO-6 policies. While a small amount of coverage is typically included on an HO-6 policy at no cost, the limit that is included is usually very low and most often insufficient.


As the Minnesota multifamily insurance market continues to decline, there are fewer carriers who are actively pursuing new business in the state resulting in substantial increases and coverage terms that are becoming more and more restrictive. This is often taking the form of increased Association dues to cover costs and increased deductibles for your Association and in turn you as a Homeowner.


Please contact the Gassen client support team at if you are unsure of your association’s loss assessment requirements and contact your personal insurance agent today to make sure that you are adequately covered for your Association deductible amounts including loss assessments.

Aerial view of neigborhood of townhomes and single family homes. Photo is intended to reflect the layout of an homeowner's association.


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