I am reviewing a policy with the following provision regarding additional coverage for loss assessments:
"ADDITIONAL COVERAGES . . . 7. Loss Assessment. We will pay up to $50,000 for your share of loss assessment charged against you by a corporation or association of property owners. This coverage applies for an event that occurs during the policy period when the assessment is made as a result of "sudden and accidental" direct physical loss to the property owned by all members collectively. This loss must be caused by a loss under Section I – LOSSES WE COVER for DWELLING PROTECTION COVERAGE and OTHER STRUCTURES PROTECTION COVERAGE, subject to all provisions of the policy."
The word "event" is not defined in the policy.
There are deadlines in the policy that are affected by the interpretation of the date of the "event." Since the policy is ambiguous as to the definition, my initial interpretation is that the date of the "event" would run from loss assessment date not the date of damage/loss. My question is whether the word "event" in this provision would apply to the assessment date or whether it would apply to the date of damage/or loss.
Colorado Subscriber
You have to look at the sentence as a whole for the application of the terms.
This coverage applies for an event that occurs during the policy period when the assessment is made as a result of "sudden and accidental" direct physical loss to the property owned by all members collectively.
Looking at the sentence, event is used to describe the occurrence during the policy period that causes damage. It doesn't make sense that event would refer to the date of the loss assessment as that is the coverage. Loss assessment is always triggered by some other loss. It might make more sense if you gave me the details of the loss and the assessment. Looking at just this piece of language, this is how we see it.