What Co-op Insurance in NYC Covers
The big question in co-op insurance is, “What will my policy cover?” HO-6 policyholders can expect protection against 16 perils, including hazards like:
Your policy can cover co-op property, home contents, personal liability, and additional living expenses.
Property Insurance for Co-ops
As a co-op shareholder in the building, you typically don’t own the walls, doors, or windows. But you may own the kitchen cabinets, light fixtures, and appliances. That means you’re responsible for repairing or replacing those items if something goes wrong.
For instance, let’s say you have a small grease fire in your kitchen. You put the flames out quickly, but not before they ruined your countertop and your over-the-range microwave.
Because the fire didn’t damage the walls or doors, the building’s master policy doesn’t kick in. Instead, you’d file a claim with your own insurance to cover the damage.
Home Contents Coverage
The contents portion of your HO-6 policy protects your personal items. It’s sometimes referred to as personal property coverage and helps pay to replace or repair your belongings if a fire or another covered peril damages them.
Keep in mind that your policy will have coverage limits. The coverage limit is the maximum amount your policy will reimburse you for a covered claim.
The cap on your coverage is typically enough to cover furniture, clothing, and other items you own. However, expensive electronics, fine art, or other valuables can require additional coverage.
Talk to your insurance agent or insurance broker about optional coverage to get enough protection for your personal effects.
Co-op Liability Insurance in New York City
Imagine if a friend or a family member injured themselves in your apartment. Does NYC co-op insurance cover you then?
Generally, the answer is yes. Co-op insurance includes personal liability coverage that can protect you if a guest injures themselves in your home or if you damage someone else’s property.
Liability can pay for legal expenses, medical bills, and property damages.
Additional Living Expenses Coverage
You may not be familiar with additional living expenses (ALE) coverage, but it can be crucial as a co-op owner. It can pay for hotel expenses and food if your home is uninhabitable after damage caused by a covered peril.
ALE is sometimes called loss of use coverage, and most co-op policies have this protection.
Here’s how it works: Let’s say a fire swept through several units in your co-op building, including yours. The damage is so bad that you can’t live there. It might take months to restore the building to a livable condition. While repairs are being done, ALE coverage can pay for temporary accommodations, food, and other expenses until you can move back home.