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Co-Op Insurance
Basics

A Co-Op policy is a variation of a Homeowners policy with alterations to meet the specific needs of Co-Op owners. We recommend, to all of our current and future Co-Op customers, that you please read the insurance requirements in your Co-Op agreement. Even though you are buying shares in the Co-Op association there may still be a need to provide coverage for building related items and or your improvements.

Co-Op insurance is divided into the following categories:

Coverage A
 		Dwelling: The portion of your unit that you are required to insure as described in your by laws.
 
Coverage C
 		Contents: This coverage is for your household belongings.
 
Coverage D
 		Loss of Use: This pays for your families increased cost of living if you cannot live in your unit due to a covered loss.
 
Coverage E
 		Liability: Coverage for bodily injury or property damage due to the negligence of a person covered on your policy.
 
Coverage F
 		Medical Payments: Coverage for medical expenses for others in your unit and out of your unit depending on the circumstances.


Tips

By-law Review - This will help you and your agent be sure you are insuring your responsibilities for an adequate amount. The By Laws are long but there is usually a very manageable section about insurance.

Understand Loss Assessment Coverage - Because this is often overlooked by agents and consumers. Loss Assessments may be charged to you by your Association for losses that were either not covered or not covered adequately by the Association’s insurance. Each unit owner may get a share of the loss and depending on the nature of the loss the amount may be substantial. Protect yourself by buying as much of this coverage as you can get. Usually only $1,000 will be included in most policies. 

The key to this coverage is that the loss must be to a peril insured in your policy. 

Example: an earthquake hits the East Coast and your Association had no coverage. It may assess all the unit owners to pay damages to common structures. If you have no earthquake coverage then your Loss Assessment coverage would not respond. If however, there were a fire to a common structure and the Association insurance was not enough to pay the whole claim any assessment would be covered by your policy to the limit purchased in your policy because Fire is a covered peril. This coverage also applies to Liability losses so be sure you inquire about additional coverage limits. 
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