In the case of a liability claim against a condominium corporation, what does unit owner's loss assessment coverage address?

Unit owner's loss assessment coverage is designed to protect individual unit owners in a condominium from unexpected assessments that may arise from liability claims against the condominium corporation. When a claim exceeds the insurance coverage maintained by the corporation, the condominium can assess its unit owners for the shortfall, which is allocated based on ownership interest in the property.

The correct answer indicates that this coverage pays the unit owner’s share of any insurance shortfall. This is crucial for unit owners, as there may be situations where a liability incident (like damage to a common area) leads to a claim that exhausts the condominium's insurance limits, or the claim could be for something not fully covered. In such cases, the unit owner may be responsible for contributing their share to cover the gap. Loss assessment coverage ensures that unit owners have financial protection against these unexpected assessments, making it a vital component of their insurance policy.

The other options do not accurately represent the role of loss assessment coverage. It does not cover the entire amount of a claim or simply the deductible; rather, it specifically addresses the allocation of costs arising from shared liability, which is why the selected answer is the most appropriate.