DEFINITION of 'Cooperative Insurance - Co-Op Insurance'

An insurance for owners of co-op apartments that covers losses to their units. Losses that occur as a result of a burglary, fire damage or liability are covered, among others. Generally, a co-op building provides coverage for common areas such as the hallways, basement, roof, elevator and common walkways. The co-op association's insurance policy protects the building, not the individual apartment owners' apartment, unless the damage occurs as a result of something under the association's jurisdiction.

BREAKING DOWN 'Cooperative Insurance - Co-Op Insurance'

When you buy a co-op apartment, (a housing unit of which you hold a share of the corporation that owns and manages the unit) the building will already have an insurance policy that protects itself and shareholders for claims resulting from lead paint exposure, sewer backups, earthquake damage and other events that might affect the entire building. Cooperative insurance covers claims that affect individual shareholders and the personal belongings inside their units. It is advisable to find out what the building association's insurance policy covers prior to signing up for a co-op insurance policy.

RELATED TERMS
  1. Cover Note

    A temporary document issued by an insurance company that provides ...
  2. Personal Lines Insurance

    Property and casualty insurance products for individuals that ...
  3. Assessable Policy

    A type of insurance policy that may require the policyholder ...
  4. Combined Physical Damage Coverage

    Combined physical damage coverage is an auto insurance policy ...
  5. Extra Expense Insurance

    Insurance coverage that provides funds for reasonable and necessary ...
  6. Insurance

    A contract (policy) in which an individual or entity receives ...
Related Articles
  1. Small Business

    Facing Co-Op Bankruptcy

    Co-op investors can often be penalized for other people's actions. Read on to learn about the most common types of co-op default.
  2. Investing

    Living in New York City: Co-ops vs. Condos

    Buying an apartment in New York City means familiarizing yourself with the pros and cons of these two types of dwellings.
  3. Investing

    Basics and Differences of Co-ops, Condos & Condops

    Before purchasing a condo or a co-op (or the rarer condop) apartment, here are some basics every purchaser needs to understand.
  4. Insurance

    3 Inexpensive Healthcare Options For Young People

    From health co-ops to private plans, here's a rundown of some of the best healthcare options for young adults just out of college.
  5. Financial Advisor

    How to Create a Retirement Co-Op in Your Community

    As the retirement boom continues, retirement co-ops are growing in popularity. Here's how to set one up in your community.
  6. Managing Wealth

    Basics For Buying An Apartment In Manhattan

    Here's info to help you get the apartment hunt started right.
  7. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  8. Insurance

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  9. Insurance

    Have The Right Condo Insurance?

    How well does your condo's master-insurance policy protect you? Here's why you'll probably need separate insurance for your own unit and possessions.
RELATED FAQS
  1. Does homeowners insurance cover fires?

    Understand if your homeowners insurance policy covers fire damage so you can protect what is likely to be your most valuable ... Read Answer >>
  2. What are some examples of industries that practice price discrimination?

    Understand the various types of insurance coverage offered in the insurance marketplace, and learn why each policy should ... Read Answer >>
  3. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  4. How does the 80% rule for home insurance work, and how do capital improvements affect ...

    The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the ... Read Answer >>
  5. What caused the European / Eurozone debt crisis?

    Understand how insurance companies price insurance premiums, and learn the importance of data and statistics in the insurance ... Read Answer >>
  6. Which insurance policies do I really need?

    Your needs for insurance depend on your situation and can't be generalized for everyone, but there are a lot of options available. ... Read Answer >>
Hot Definitions
  1. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price ...
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying ...
  3. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  6. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
Trading Center