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.
A typical cooperative is composed of individual shares and units. 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.
A master policy is also purchased by the corporation to cover its building and common areas. These policies include property and liability coverage that protects the corporation from losses.
A separate individual policy is purchased by each owner of a unit in addition to a master policy. This policy can be confusing to read, so it's important to work with an agent who knows how to understand this complex insurance system.
If your co-op or condominium is in a high-risk area, you'll want to find out if the property has flood insurance. This coverage is not unusual for New York City buildings.
Also, ask about earthquake coverage and water backup coverage. These can cover floods or drains that are backed up. 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. This is useful for those who own expensive equipment that they can't live without if damaged or stolen.
If you have to make a claim, a good co-op policy will save you time and headaches. It will cover your loss of use for your condo or coop as well the replacement value on things like furniture and appliances.
Get a quote for co-op coverage from USAA. They have excellent customer service and can help you find a great deal on the right policy for your needs.
Comparing the prices and coverage of different companies is the best way to get the best deal when shopping for co-op insurance. 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 price of a cooperative insurance policy is determined by the location. Co-ops in urban areas can be much more expensive than those in suburban areas. However, you can expect to pay about the same for co-op coverage as for a standard homeowners policy.