Cooperative Insurance - Co-Op Insurance

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. Patronage Dividend

    A dividend or distribution that a co-operative pays to its members ...
  2. Cover Note

    A temporary document issued by an insurance company that provides ...
  3. Fire Insurance

    Insurance that is used to cover damage to a property caused by ...
  4. Extra Expense Insurance

    Insurance coverage that provides funds for reasonable and necessary ...
  5. Personal Lines Insurance

    Property and casualty insurance products for individuals that ...
  6. Hazard Insurance

    Insurance that protects a property owner against damage caused ...
Related Articles
  1. Home & Auto

    Housing Cooperatives: A Unique Type Of Home Ownership

    Co-ops are often less expensive than apartments and provide some unique benefits and drawbacks for owners.
  2. Options & Futures

    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.
  3. Home & Auto

    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.
  4. Home & Auto

    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.
  5. 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.
  6. Financial Advisors

    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.
  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

    7 Reasons You Have a Love-Hate Relationship With Home Insurance

    What is covered in a policy can vary widely by company, so you’d better know what to look for when shopping for home insurance.
  9. Home & Auto

    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.
  10. Options & Futures

    Insurance 101 For Renters

    If it's time for you to leave the nest, find out how to protect your new home from disaster.
RELATED FAQS
  1. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
  2. 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 >>
  3. Does renters insurance cover moving?

    Learn how a renters insurance policy will only provide coverage during a move under certain circumstances, such as damage ... 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. Suppose my garage collapsed onto my car. Are damages covered by my home insurance ...

    Generally, damage to an automobile will be covered by comprehensive car insurance, which is in addition to collision coverage ... Read Answer >>
  6. Why do insurance policies have deductibles?

    Learn the basic concept of an insurance deductible and why they mitigate moral hazards and provide financial viability to ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center