Question to ChatGPT:

My HOA is sued for bodily injury due to a rock falling from common property. The HOA insurance carrier denies the claim. Does my Loss Assessment coverage offer protection? What about my personal umbrella?

ChatGPT said:

I'm not a lawyer or insurance adjuster, but I can explain the general role of Loss Assessment coverage and personal umbrella policies in a situation like yours, where your Homeowners Association (HOA) is sued for bodily injury and the HOA's insurance denies the claim.

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1. Loss Assessment Coverage (Part of Your Homeowners Policy - HO-6)

Purpose: This coverage helps when your HOA levies a special assessment on unit owners due to a covered loss (like bodily injury or property damage) involving common areas.

In your case:

• If the injury was caused by a rock falling from common property, and the HOA’s insurance denies the claim (for example, due to an exclusion or policy limit), unit owners may be assessed to cover the costs (damages, legal defense, settlements).
• If that happens, Loss Assessment coverage may help pay your share of the assessment — but only if the cause of the claim is a “covered peril” under your own policy.

Key points to check:

• Coverage limits (usually starts at $1,000, but you can increase it).
• Whether the injury is from a peril covered by your own HO-6 policy.
• If assessments are for legal liability or property damage (some policies limit what type of assessments they cover).

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2. Personal Umbrella Policy

Purpose: This provides extra liability coverage beyond your homeowners or auto insurance limits.

In your case:

• Your personal umbrella policy generally covers you, not your HOA.
• It would kick in if you were personally named in the lawsuit and your liability exceeds your base policy’s limits.
• It typically would not pay for assessments issued to you by the HOA, unless the underlying liability stems directly from your own actions or legal responsibility.

Example:

If the injured party sues both the HOA and individual owners (which is rare, but possible if, say, the owner failed to report a hazard), then your umbrella might provide protection — but that depends on the circumstances and the language of your policy.

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Summary:

Coverage	May Apply?	Conditions
Loss Assessment	✅ Possibly	Only if the injury is due to a covered peril and you’re assessed.
Personal Umbrella	❌  Unlikely	Unless you're personally named in the suit and legally liable.

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What You Should Do Next:

1. Review your HO-6 (homeowners) policy, especially the Loss Assessment endorsement.
2. Check with your insurance agent to confirm whether the bodily injury qualifies as a covered peril under your policy.
3. Ask your umbrella carrier if you have coverage in case of being assessed due to a liability loss by your HOA.
4. Talk to a lawyer if you're facing actual legal liability or a significant assessment.