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Shareholders are strongly encouraged to carry adequate homeowner’s insurance coverage of their apartments, fixtures and furnishings, and personal possessions. Shareholders may be responsible for damage to other apartments caused by leakage from plumbing, basin, or other fixtures in their apartments.


If you’re in the process of purchasing a new insurance policy, comparison shop for the best rates and coverage, which will vary widely from company to company, so contact several different agencies. Consider the following when comparing policies:


Type of Coverage. Damage to personal property from fire, smoke, vandalism, wind, hail, and water (caused by damaged plumbing); theft of personal property on and off the premises; personal liability for lawsuits if, for example, your bathtub overflows and damages the apartment below, or your dog bites a neighbor, or someone slips and falls in your apartment due to negligence.


Loss Assessment Coverage: In addition to the typical homeowners’ insurance coverage, you might consider purchasing loss assessment coverage. If the co-op suffers a loss that exceeds the coverage provided by the co-op’s own insurance policy, the co-op would have to pass on the difference to the shareholders in the form of an assessment. The loss assessment coverage in your insurance policy would protect you against such an eventuality — your insurance company would cover your share of the assessment (up to the amount of coverage you have purchased). A typical premium for loss assessment coverage of $25-$50 per year could provide you with protection for loss assessments from $25,000 to $50,000.

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