Coops insurance is an insurance policy that's tailored specifically for people who live in condo or co-op buildings. This type of coverage differs from traditional homeowners policies in that you don't actually own the building; instead, your condo or co-op is owned by a corporation.
A cooperative usually consists of individual shares or 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 protect the company from loss by providing property and liabilities coverage.
The master policy also includes a separate, individual policy purchased by every unit owner. The policy is confusing, so working with an insurance agent who can help you understand the system will be helpful.
You'll want find out if your co-op, condominium or apartment is located in an area with a high risk of flooding. It's not uncommon for a building in New York City to have this coverage.
Also, ask about earthquake coverage and water backup coverage. These can cover floods or drains that are backed up. This type of risk is not covered by the typical homeowners insurance policy. It's worth paying extra for.
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.
In addition, homeowners in cooperatives can opt for umbrella liability insurance. This policy provides high levels of liability protection. It is particularly useful if your equipment is expensive and you can't risk losing it in the event of damage or theft.
If you ever need to file for a claim, having a good cooperative insurance policy could save you from a lot more headaches and trouble. You can get coverage for loss of use, furniture and kitchen appliances, as well as personal liability.
USAA can provide you with a cooperative insurance quote today. Their customer service is outstanding and they will help you find the best deal for your insurance needs.
Compare the co-op policies and prices of several companies when you are shopping around for one. This will help you find the lowest rate. Consider the Better Business Bureau rating of each company, and what previous customers had to say about their experience.
In general the cost of an insurance policy for a cooperative depends on where the building is located. For instance, a city co-op can be more pricey than a suburban co-op. Co-op policy costs are similar to standard homeowners policies.