We are adjusting windstorm losses from a recent hurricane that devastated our area. Our question concerns loss assessment coverage for unit owners under ISO homeowners form HO 00 06 05 01. We contend that coverage only applies to otherwise covered property, and that any sublimits that apply to that property in the policy also limit loss assessment coverage. For example, the policy does not provide windstorm coverage for loss to trees, shrubs, or other outdoor plants, so we are not covering assessments being charged to repair landscaping. We have heard that other insurers are paying for these assessments. Can you please comment?

Florida Subscriber

Loss assessment coverage applies whenever an assessment is made due to damage by a coverage A peril to property owned in common by all unit owners. Coverage applies without regard to whether the damaged property is otherwise “covered property.” The insuring agreement does not limit coverage by requiring that the commonly owned property must be covered for the coverage A perils under other parts of the policy, hence the coverage for windstorm loss to trees. Thus, the provisions of the loss assessment coverage supersede other, more limited insuring agreements within the policy.