New York City Co-op Insurance
What is Condominium and/or Co-Op Insurance?
Condo Insurance and/or Co-op Insurance is a type of insurance that is specifically designed to fit the needs of condominium and co-op unit owners. These owners have a unique set of needs that can only be properly covered by a policy that is specifically tailored for this type of ownership. It should also be pointed out that the master policy that the association or board takes out is strictly for the benefit of the complex, not the unit owner.
About Condominium/Co Op Insurance
An important type of coverage that is specific to a condominium/co op policy is loss assessment coverage.
- Loss Assessment Coverage: Unit owners may be required to share a part of the loss if loss or damage occurs to collectively owned condo/co op property; however, this would only occur if the association’s insurance was insufficient. Loss assessment coverage will cover your share of the loss, but only up to a certain limit (usually about $1,000, but high limits are typically available).
Overall, condominium/co op insurance is designed to protect your personal possessions, protect you against any personal liability that may occur on your property, and also to provide assistance in the event you’re your home is damaged or uninhabitable. Similar to renters insurance, in order to figure out how much condo insurance should actually be purchased, it is advisable to take an inventory of everything you own and total value on the items. This number would be the amount of coverage you would need to replace all of your possessions in the event that they were lost, stolen, or damaged as a result of a covered loss.
The condominium/co op association will have a master policy, which typically will insure the building and its common elements based upon one of the two approaches listed here.
- Bare Walls: This means that building itself will be insured ( the walls, roof, floors, elevators, etc.), however, it will not cover the things inside of your unit such as, cabinets, carpeting, plumbing, wiring, appliances, among other things. In this case, the unit owner is fully responsible for repairing and maintaining everything that is inside of his/her unit.
- Single Entity: This type of coverage means that the association’s insurance will not only insure the building itself, but also certain fixtures inside of the building, such as, cabinets, carpeting, appliances, etc.. The unit owner’s only responsibility in terms of insurance is the coverage of his/her personal property inside the unit and any changes that may have been made to the original structure.
After determining how much of the building that you are responsible for insuring, you will be able to figure out the amount of additional coverage that you will need for your unit. Anything that is not covered by the association’s master policy should be covered by your policy, as well as any improvements that you have made to the property. Consulting a qualified insurance agent is the absolute best way to determine the right coverage for you on your specific insurance policy
What is the Difference between Condominium/Co Op Insurance and Renters Insurance?
Renters Insurance protects your personal property against any damage or loss, while also insuring you in the event that someone is injured on your property. The landlord is responsible for taking care of insuring the building itself.
Condominium/Co op Insurance
Condominium/Co Op policies provide coverage for your personal belongings, improvements that you have made to your home and your legal liability for any injuries or damages that are suffered by others on your property. Condo/Co Op insurance does not provide coverage for the most structural building items, since this is the association’s responsibility. Under a condo/Co Op corporation agreement, there may also be added responsibility for common areas, such as lobbies, hallways, and/or recreational areas. As such, the condominium/co op insurance policy will cover insured damage or loss to the common areas as well as legal liability due to anyone injured in a common area.