What does the term "Loss Assessment" in a condo policy cover?

"Loss Assessment" in a condominium insurance policy refers to coverage that protects individual unit owners from certain shared financial responsibilities that arise from losses or damages to common areas of the condo building or community. When an insured event occurs that the condo association must address, such as property damage that exceeds the master policy coverage or needs to be funded through assessments to unit owners, the costs are often distributed among all unit holders.

The correct option indicates that this coverage typically handles up to $10,000 of shared losses. This amount represents a cap on what the policy will cover in terms of assessments levied against the unit owners due to an event like property damage or liability claims that the master policy does not fully cover. This helps protect individual owners from significant unexpected financial burdens arising from shared community risks.

The other options do not accurately reflect the essence of "Loss Assessment." While damages not covered by personal policies or costs above master policy limits may involve complex insurance issues, they do not specifically capture the definition or purpose of loss assessment coverage within condo policies.