Coops Insurance is a type of homeowners insurance designed for those who live in coops or condos. 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. A corporation or building owner purchases the shares that comprise the property, and then leases those shares to individual owners of units who have built up equity.
A master policy is also purchased by the corporation to cover its building and common areas. These policies offer property and general liability coverage to protect corporations from financial losses.
There is also a separate insurance policy for each individual unit. It can be difficult to read this policy, so you should work with a knowledgeable agent who understands the complex insurance system.
Find out if there is flood insurance on your property if it's in a risky area. It's not uncommon for a building in New York City to have this coverage.
Ask about earthquake and water backup insurance, as these can help cover damage caused by floods or blocked drains. This type of risk is not covered by the typical homeowners insurance policy. It's worth paying extra for.
A home business policy will also cover your equipment, workstations and other items if you have a small hobby or professional business that you run from your condo unit or co-op.
The umbrella policy offers homeowners a large amount of protection against liability in a single policy. It is particularly useful if your equipment is expensive and you can't risk losing it in the event of damage or theft.
It can be a real headache to have to file an insurance claim. A good policy for co-op will help you avoid this. 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 provides a free quote for cooperative insurance. USAA offers excellent customer service, and they can help you get a good deal on the best 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. You should look at each company's Better Business Bureau rating and consider what other customers have said about their experience with them.
In general the cost of an insurance policy for a cooperative depends on where the building is located. As an example, the cost of a cooperative in a city area can be higher than that in a suburb. However, you can expect to pay about the same for co-op coverage as for a standard homeowners policy.