Insurance for Condos and Co-ops: What You Should Know
June 8, 2023
Westchester and the New York tri-state area are filled with condos and co-ops that offer their own set of advantages to single home living. But just like single homes, an investment in a co-op or condo requires protection — and that’s where insurance comes in. What you may not know is that insuring your co-op/condo requires considerations specific to them. You can avoid problems and save money by understanding exactly what those considerations are, how they relate to your association policy, and what your responsibilities will be if you have a claim.
Because co-op and condominium owners share building structures, two policies are often necessary – a master policy for the building and an individual policy to cover you from liability, protect your personal belongings and to insure any apartment interior structural elements that are not covered by the master policy.
The master co-op /condo policy: for common areas
The association is responsible for the master policy, which essentially protects the entire building structure and items shared with others in your complex such as the roof, basement, elevator, boiler and walkways. Fees typically come out of your maintenance or association dues.
There are a number of different ways your association may be set up. In order to figure out how much personal insurance coverage you need for your condo or co-op, you need to find out exactly what your association’s master policy and/or bylaws require.
Steps to take for handling a claim
Filing an insurance claim is a multistep process, and not all claims follow the same order or schedule. That’s why it’s important to start the claims process with your insurance company as soon as a loss event takes place.
- Call your insurance agent as soon as possible: It’s important to let your insurance agent know about the incident. Your agent will investigate and determine how the claim should best be handled.
- Be proactive: As a coop or condo owner, you might share walls with your neighbor. If something happens that affects you both, for example if a pipe bursts inside a wall from the unit above, don’t assume your neighbor will be responsible for your damages. Call your agent to rectify the situation. The insurance company will determine if the negligence is on the unit above and subrogate for the damages paid out.
- Understand the timing of your claim: There are deadlines for filing a claim on your policy. Your agent can advise you on the timeline — including deadlines for filing the claim itself, when and how to submit additional information, and when you can expect the insurance company to contact you.
- Supply the information your insurer requests. Keep thorough and organized records of anything related to the claim. Always take photos and keep receipts of what you are have paid to be approved for reimbursement.
The takeaway: be sure to know which structural parts of your home are covered by the condo/co-op association master policy and which are not, so you can properly insure your apartment through your individual policy. Much of the information about your master policy should be in your association’s bylaws which can usually be obtained from the co-op or condo board, or from the company that manages the building.
Your best course of action is to work with an insurance professional that has experience in co-ops and condominiums. When selecting a policy, be sure to ask about discounts that may be available to you. If you insure your unit with the same company as your auto insurance policy, for instance, you might also get an additional reduction in premiums.
Rey Insurance: Your home base when it comes to your home coverage
Our homeowners insurance experts have been protecting homes, condos, co-ops, townhouses and apartments in Sleepy Hollow and Tarrytown and throughout Westchester County, New York and beyond since 1978. Our team of independent insurance agents will make sure you have the very best policy for your needs. Find out more by visiting www.reyinsurance.com/services/personal/homeowners/ or call 914-631-7628.
