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.

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis