Condo Versus Co-op Insurance

Most people know what a condominium is. But if you’re moving to New York, you may not realize that many of the buildings in this state use a co-op model, which isn’t the same as a condominium. If you buy a condo here and look for insurance, you’ll have to be sure the policy you buy covers condos and not co-ops. A good insurance agency, like Carminucci Agency, serving Croton Falls, NY, can steer you in the right direction.

What’s the Difference Between Condo Indurance and Co-op Insurance?

A condo is a living space that’s part of a bigger development in which a group, like a management association, cares for common areas and helps with exterior maintenance. Condo owners buy their units outright or with a mortgage. With a condo, you have the deed to your unit. And while you may pay monthly association fees and special assessments for common-area or common-structure (e.g., roof) repairs, you own the unit. 

A co-op is closer to a rental situation in which you buy shares in the company that owns and manages the building. The co-op approves whether you live there or not, and the number of shares you have can depend on the size of the unit you live in. You don’t own real property, though; your agreement to live there is still a type of lease. When you leave, you sell your shares, not your property.

In many cases, co-ops and condos use the same types of policies. But a key difference is that for co-ops, you don’t own the interior walls of your residence, and in condos, you do. A condo policy could conceivably cover a co-op, but a co-op policy may not offer enough coverage for a condo. If the interior walls in your unit suffer damage, a co-op policy might not cover the repair, while condo insurance should.

Contact Carminucci Agency, serving Croton Falls, NY, to find the right condo or co-op insurance for your situation. Don’t let a misunderstanding delay your ability to find a policy that covers everything you own.