Coops insurance, also known as condo insurance, is designed specifically for residents of co-op and condo buildings. This type of insurance differs from homeowners policies, in that your building is not owned by you.
A typical cooperative is composed of individual shares and units. A corporation or building owner purchases the shares that comprise the property, and then leases those shares to individual owners of units who have built up equity.
The corporation will also purchase a master policy which covers the entire building, including its common spaces. These policies provide property and liability protection to protect the corporation against losses.
There is also a separate insurance policy for each individual unit. It can be difficult to read this policy, so you should work with a knowledgeable agent who understands the complex insurance system.
Ask if you can get flood insurance for your condominium or co-op if they are located in a high-risk zone. New York City is a city where it's not uncommon to find this coverage.
You should also ask about earthquake and water back-up coverage, which can help cover loss due to floods or backed up drains. These types of risks aren't covered by a typical homeowners policy, so they are worth the extra money you pay for them.
A home business policy will also cover your equipment, workstations and other items if you have a small hobby or professional business that you run from your condo unit or co-op.
Homeowners in co-ops can purchase umbrella liability coverage, which provides a lot of liability protection under one policy. This is useful for those who own expensive equipment that they can't live without if damaged or stolen.
A good co-op insurance policy can save you a lot of headache and hassle if you ever have to file a claim. You can get coverage for loss of use, furniture and kitchen appliances, as well as personal liability.
USAA provides a free quote for cooperative insurance. Their customer service is outstanding and they will help you find the best deal for your insurance needs.
When shopping for a cooperative insurance policy, make sure you compare coverage and pricing from multiple companies. You'll find the best price. Compare the Better Business Bureau ratings and read what customers are saying about each co-op insurance company.
The cost of co-op policies is generally determined by the location of the building. For instance, a city co-op can be more pricey than a suburban co-op. Co-op policies are about the same price as standard homeowners' insurance.