Loss assessment coverage, also known as special assessment insurance, is a type of protection in homeowners and condominiums policies. This coverage provides peace of mind by helping policyholders cover the additional costs that may arise from assessments levied by the association.

It provides additional coverage in cases where owners are responsible for bearing the costs of repairing or replacing common damages to shared areas or elements within a community of owners. These loss assessments may include, for example, detriment to common areas such as hallways, pools, parking lots, or plumbing systems.

Without this coverage, owners could face unforeseen and unexpected charges.