Homeowners Policy (HO)Question 339 of 474
A condominium association charges each unit owner a $4,300 assessment after a covered loss to the commonly owned property. Under the loss assessment additional coverage on a standard unendorsed form, the policy pays:
a.$1,000 of the assessment
b.$2,500 of the assessment
c.$4,300, the full amount
d.$500 of the assessment
Explanation
Loss assessment is an additional coverage with a standard limit of $1,000 for the insured's share of an assessment charged by the association after a loss to property owned collectively, so the owner keeps $3,300 of the $4,300 charge. The full-payment answer treats loss assessment as if it shared the Coverage A limit. A higher amount can be bought by endorsement.
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