Loss assessment is insurance coverage for condo owners that provides protection for situations where each owner of a shared property, like a condominium or co-op, is held financially responsible for a portion of the costs of damage to:
The building
The shared areas of the property
Injury in shared areas
The amount to be paid by each owner is assessed by the homeowners or condo owners corporation or association, this is known as the loss assessment. As an owner, you then have to pay your share to cover the damage.