Do You Need Co-op Insurance?

If you are an owner in a co-op arrangement, you are going to need to purchase co-op insurance. While the co-op itself most likely has some type of insurance, you are going to need insurance coverage for your individual unit. The co-op insurance that is purchased by your co-op is not going to cover your unit specifically.

What It Covers

The purpose of co-op insurance is to limit your liability and the potential of having to pay a great deal of money out of pocket. Basically, the insurance is going to protect you against any type of damage to the inside of your unit. For example, let's say that you accidentally started a fire and it damaged the inside of your unit. With co-op insurance, the insurance company is going to pay for the repairs. If a visitor inside your unit falls and gets hurt, your co-op insurance is going to step in to pay for any medical bills that he or she might have so that you do not have to.

Your co-op insurance is also going to cover the cost to replace your personal property within the unit if it is damaged unexpectedly. The cost of your personal property can be substantial, and you need some type of coverage to replace it if it is damaged or destroyed.