It is important for co-op and condo owners and boards to be properly insured against various risks. Each type of insurance listed below serves a specific purpose and provides coverage against different risks such as fire, theft, accidents, and various lawsuits.
Homeowners insurance is a must-have for all co-op and condo owners, as it provides coverage for accidents that occur inside their units. The coverage is designed to protect the homeowner's personal property and liability in case of damage or loss.
What systems the co-op or condo association is responsible for versus what needs to be covered by the homeowners’ policy is determined by the offering documents.
This type of insurance provides coverage for the building and its systems in case of damage caused by fire, leaks, etc. Be sure to review exclusions for terrorism, natural disasters, mechanical failures, and lead paint.
This type of insurance protects the directors and officers of the association from lawsuits.
For co-ops or condos with retail space owned by a third-party real estate investor, separate policies may be required.
With an increase in proptech and remote monitoring of building systems in the cloud, cyber security coverage is becoming increasingly important.
Cyber security insurance is different from crime policies as it covers economic damage due to failure of network security or privacy controls.
E&O is a professional liability insurance that many businesses hold to cover court costs and settlements. This type of policy is not commonly used in co-ops and condos today.