Coops insurance is an insurance policy that's tailored specifically for people who live in condo or co-op buildings. This coverage is different from standard homeowners policies because you do not own the building. Instead, it's owned by a company.
A cooperative usually consists of individual shares or units. The shares of the property are bought by a building owner, corporation or management company. They then lease them to the individual unit owners that have equity in their units.
The corporation also purchases a master policy that covers the building and its common areas. These policies include property and liability coverage that protects the corporation from losses.
The master policy also includes a separate, individual policy purchased by every unit owner. It can be difficult to read this policy, so you should work with a knowledgeable agent who understands the complex insurance system.
You'll want find out if your co-op, condominium or apartment is located in an area with a high risk of flooding. This coverage is not unusual for New York City buildings.
Ask about earthquake and water backup insurance, as these can help cover damage caused by floods or blocked drains. These risks are not covered under a standard homeowner's policy. They are therefore worth paying the extra amount for.
You should also consider a home-based business insurance plan that will cover your equipment and your workstations, if your hobby is a small business you operate from your condominium or coop or if your income comes from working from home.
A co-op homeowner can also purchase umbrella insurance that offers high liability protection all in one policy. This is especially useful if you own expensive equipment and can't afford to be without it if it's damaged or stolen.
It can be a real headache to have to file an insurance claim. A good policy for co-op will help you avoid this. This can cover the cost of replacing items such as kitchen appliances or furniture and your personal liability in case you hurt someone on the property.
USAA offers a quote on co-op insurance. They have excellent customer service and can help you find a great deal on the right policy for your needs.
When shopping for a cooperative insurance policy, make sure you compare coverage and pricing from multiple companies. You'll find the best price. It's important to check each company's Better Business Bureau score and see what other customers say about the experience they had with them.
In general, the cost of a co-op insurance policy depends on the location of the building. Co-ops in urban areas can be much more expensive than those in suburban areas. You can expect to pay the same amount for co-op insurance as you would for standard homeowners coverage.