Coops insurance is an insurance policy that's tailored specifically for people who live in condo or co-op buildings. This type differs from traditional homeowner policies because the condo or building you live in is owned and managed by a corporation.
Normally, a co-op is made up from individual units or shares. A corporation, building owner or management company purchases the shares which make up the property. These are then leased to individual unit holders who have built equity.
The corporation also buys a master coverage that covers all common areas and the building. These policies protect the company from loss by providing property and liabilities coverage.
In addition to the master policy, there is a separate individual policy that's purchased by each 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. In New York City, it's common for buildings to be covered by this type of insurance.
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 won't be covered by your typical homeowners policy. Therefore, they are well worth the additional money.
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.
Co-op homeowners can also opt to purchase umbrella liability insurance, which offers a high amount of liability protection in one policy. 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. It can help cover loss of use in your condo or co-op, replacement cost value on items like kitchen appliances and furniture, and personal liability if you injure someone else while on the property.
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.
If you're looking for co-op coverage, compare the pricing and coverage offered by multiple companies in order to get the most competitive rate. Look at the Better Business Bureau ratings of each company and what customers have to say about them.
In general, the cost of a co-op insurance policy depends on the location of the building. A co-op located in the city may be more costly than one in the suburbs. Co-op policies are about the same price as standard homeowners' insurance.