In this Nov. 15, 2017, photo, roof damage caused by Hurricane Maria can be seen in San Juan, Puerto Rico. (Photo: AP Photo/Carlos Giusti)
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Question: A homeowner received a loss assessment charge from the condo association regarding damages caused by Hurricane Maria.
The date of the actual physical loss to the condominium caused by Hurricane Maria was Sep. 20, 2017. The homeowner had a homeowners insurance policy with Oneness Insurance Company, with a policy period of July 1, 2017, to July 1, 2018, which the insured did not renew.
The additional coverage of loss assessment states that "We will pay up to $1,000 for your share of loss assessment charged during the policy period against you…" The date of the loss assessment was Aug. 15, 2018. The homeowner presented the loss assessment claim to Oneness Insurance Company, and the company denied the claim based on the loss assessment policy language that says the loss assessment had to be charged during the policy period. Since the date of the loss assessment was after the policy period, Oneness Insurance Company denied the loss assessment claim.
Is this loss assessment claim covered under the homeowner's policy? Or did Oneness Insurance Company correctly deny this claim?
— Puerto Rico Subscriber
Answer: The policy clearly states that up to $1,000 is paid for assessment charged during the policy period against you. Based on that wording, the carrier is correct in that there is no coverage under that policy. Had the policy stated that coverage was for an assessment for a loss that occurred during the policy, then there would have been coverage. But, the policy ties the coverage for loss assessment to the assessment itself, and the assessment did not occur until after the policy had expired.
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