What does loss assessment coverage specifically protect against?

Loss assessment coverage specifically protects against charges levied by property associations for shared losses. This type of coverage is particularly relevant for owners in condominiums or planned unit developments, where the community association may assess fees to cover damages that affect common areas or shared property. For example, if a common area is damaged due to a natural disaster or an event covered by the association's master policy, the association may impose an assessment on the individual unit owners to recover those costs. Loss assessment coverage helps policyholders to be financially prepared for these additional charges, relieving the burden of unexpected expenses related to communal property damage.

The other options do not align with the focus of loss assessment coverage. Personal injury claims pertain to liability and health-related issues rather than property assessments by associations. Damage to personal belongings in transit addresses coverage related to personal property and not communal financial responsibilities. Legal fees related to insurance disputes involve different types of policies and coverages and do not connect with the concept of loss assessment fees imposed by an association.