Insurance

The Co-op carries both fire insurance to insure the structure and all public areas as well as liability insurance to protect it against claims resulting from accidents for which the Co-op might be liable. The Co-op also carries Directors and Officers Liability Insurance. THE CO-OP’S INSURANCE POLICIES DO NOT COVER THE PERSONAL INTERESTS OR LIABILITY OF INDIVIDUAL SHAREHOLDERS. Generally, an easy way to think about the difference is as follows: anything within the interior of an apartment, including the interior walls and paint, is the shareholder’s responsibility. Anything inside the walls of the building or in the common areas is the responsibility of the Co-op.

If, for example, a fire destroyed your apartment, you would be responsible for rebuilding it and replacing its contents. At most, the Co-op would be responsible for restoring the mechanical services to your unit. To be uninsured, therefore, carries a significant risk.

For this reason, ALL SHAREHOLDERS ARE REQUIRED TO SECURE THEIR OWN FIRE, THEFT AND PERSONAL LIABILITY INSURANCE TO PROTECT THEM–SELVES, THEIR NEIGHBORS AND THEIR PERSONAL PROPERTY. The Co-op requires each shareholder to purchase and maintain sufficient homeowners’ insurance (sometimes called “co-op insurance”).

If you do not wish to insure your personal possessions against loss, that is your business. But, a problem in one apartment can damage another apartment. A fire, flood, or smoke condition in your apartment can ruin all of the contents of your neighbor’s apartment. A guest in your apartment can start a fire that damages another apartment, slip and fall inside your apartment, or injure another shareholder. Thus, each shareholder must carry sufficient insurance to cover that possibility. This is to protect the entire Co-op.

The Co-op requires that each shareholder carry $500,000 of liability insurance. The Board recommends that each shareholder carry at least $1,000,000 of liability insurance.

Beginning in 2007, the Co-op requires proof of insurance upon the transfer of shares to a new owner.