Eric Eggert, Business Development Specialist, explains why owners should maintain their own insurance policies when living in a co-op or condo.
In a co-op or condominium, the bylaws or other governing documents dictate what the responsibility of the owner is in the event of damage or destruction from a covered peril, such as fire or a burst pipe. In almost every situation, improvements or betterments made by the owner or even a prior owner, are going to be the current owner’s responsibility, so in the event of a loss if they want the unit restored to its pre-loss condition, they need their own insurance.
In addition, damage to their contents is generally going to be their responsibility to insure, as are the additional living expenses needed to eat or live elsewhere in the event the unit is uninhabitable. In the event of negligence on the part of the owner or a family member, they can be sued by another owner, which may be covered by the Personal Liability section of a homeowner’s policy. The community association has insurance to protect their needs, so should you.
