Coops insurance is a form of homeowner insurance that's specifically tailored to people who live in co-op or condo 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.
Usually, a cooperative is made up of individual units or shares. 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 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.
The master policy also includes a separate, individual policy purchased by every unit owner. It's difficult to understand, and it is important to have an agent that can explain the 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. New York City's buildings are not unusual to have flood insurance.
Ask about coverage for earthquakes and back-up water, which will help you cover losses due to flooding or blocked drains. These types of risks won't be covered by your typical homeowners policy. Therefore, they are well worth the additional money.
If you work from home as a professional or run a hobby business, it's a good idea for you to have a policy that covers equipment and workstations.
In addition, homeowners in cooperatives can opt for umbrella liability insurance. This policy provides high levels of liability protection. This is especially helpful if you have expensive equipment, and cannot afford to lose it if it gets damaged or stolen.
If you have to make a claim, a good co-op policy will save you time and headaches. 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. You can get great customer service from USAA and find the right insurance policy at a great price.
When you're shopping for a co-op insurance policy, be sure to compare the coverage and pricing of multiple companies to find the best rate. Look at the Better Business Bureau ratings of each company and what customers have to say about them.
In general, the price of a cooperative insurance policy is determined by the location. For instance, a city co-op can be more pricey than a suburban co-op. You should expect to pay roughly the same as a homeowners policy for coop coverage.