Coop Insurance
We refinanced. Coop has a liability insurance, which includes hazard insurance and covers all units. Bank tried to add a home owner insurance to the mortgage payment. Is it required?
We refinanced. Coop has a liability insurance, which includes hazard insurance and covers all units. Bank tried to add a home owner insurance to the mortgage payment. Is it required?
meant to say “for Condos” not “or Condos”
Banks are requiring an HO6 policy (walls in coverage) for CONDOS, but not COOPS. The lender may be mistaken as it’s not a Fannie/Freddie rule. If it’s a local “mom & pop” lender than they may have their own rules.
The Banks are also escrowing that seperate HO6 policy now or CONDOS, they never did before. This is a new 2010 guideline.
surprised you don’t already have home owner’s insurance. my co-op requires every shareholder to have it.
A Co-op’s master policy only covers the structure and common areas. From your walls in is your responsibility. All flooring, kitchens, bathrooms, improvements, contents, are not covered by the master policy. In order to protect yourself, you should have a co-op owners policy. They are relatively inexpensive (a few hundred dollars) depending on how much you need to cover. If you need a quote, feel free to call me.
William Smoltino
Narrows Insurance Agency, Inc.
718-745-1500
I’ve heard some banks requiring it for mortgage. Co-op insurance is generally pretty cheap (around 200-400 a year).
Not so sure the above is correct regarding the bank’s participation. They have no interest in the contents of an apartment — only the proprietary lease on the coop shares.
That being said, it is a good idea to have a separate policy for the contents of the coop (furniture and fixtures that belong to owner). Your lawyer or mortgage broker should be able to straighten that out.
Any coop Board should require all shareholders to carry their own policies and name coop as secondary insured. Protects against a guest who slips and falls suing you and then the corporation for one!
check your coop’s documents, but i think that ilovebrooklyn is correct. you need your own homeowner’s policy.
You do need your own separate homeowner’s insurance for a coop, if that’s what you’re asking. In my understanding, the coop’s policy generally only covers the structure; if there were a fire or other catastrophe you’d have to pay to rebuild your own floors, fixtures, appliances, cabinetry, etc. etc. Not to mention replace your personal property.