What is a loss assessment fee?

A loss assessment fee is a charge that condo or HOA owners may be required to pay when the association's insurance policy does not fully cover damage to common areas. For example, if a fire damages the clubhouse and the HOA's policy has a $50,000 deductible, each unit owner may be assessed a share. Standard homeowner's policies often include loss assessment coverage, typically $1,000 to $5,000. You can increase this coverage with an endorsement. Review your HOA's insurance and your personal policy to ensure you are protected.