Homeowner Insurance For Co-op or Condo Owners
Have you recently bought a co-op or condo? If yes, then you must be aware that the bank needs insurance so that it is able to offer adequate protection to the investment it makes, in your property.
Additionally, you need insurance to protect your personal belongings fees or liability that may be charged as per the areas that are shared with your building such as the lobby.
You basically require two individual policies to offer adequate protection to your investment:
- Your personal insurance policy: The policy offers coverage towards protection of your belongings. It also provides coverage for improvements made in the structure of your apartment and expenses you need to make in case of a loss due to theft, fire or any other disaster listed in the policy. You would also get liability protection.
- “Master Policy” offered by the condo/co-op board: A “Master Policy” offers coverage to the common areas you tend to share with neighbors in your building such as the boiler, basement, walkways, roof and elevator for physical damage as well as liability.
Remember that it is extremely important to be aware of your home’s specific structural parts that are covered by the co-op/condo association and even the ones that are not.
Read the bylaws and/or proprietary lease of your association to facilitate the process. Do not shirk away from having a discussion with your condo association, family attorney or insurance profession, in case you have enquires.
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