Cooperative Insurance - Co-Op Insurance
What is '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.