To determine the best co-op insurance companies, we considered rates, customer service rankings, coverage options, availability, and Insurify Quality (IQ) Scores. The IQ Score uses more than 15 criteria to objectively rate insurance companies on a 1-to-10 scale. The Insurify editorial team researches insurer data to determine the final scores. J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
If you’re buying a co-op property, you’ll want co-op insurance in place to protect your investment. Like home insurance or renters insurance, this covers your personal belongings and property damage to your specific co-op unit if a disaster, burglary, fire, or other event happens. It also includes liability coverage.1
Co-op insurance can offer valuable coverage and benefits for all co-op owners, but in many cases, your mortgage lender and co-op bylaws will require you to have it, too.
Here’s what to know about co-op insurance and the best places to find it.
The best co-op insurance companies
Many insurance companies offer cooperative insurance, so it’s important to consider a few options to ensure you’re getting the best deal. Here are the top co-op insurance companies you’ll want to consider.
Amica Mutual: Best for low rates
USAA: Best for military members and families
American Family: Best overall
Who needs co-op insurance?
If you own a co-op unit, you probably need insurance on the home. Not only does it help protect your property and the belongings within it against damages, but your mortgage lender and possibly your co-op community probably require you to carry coverage.
You’ll want enough coverage to repair or replace anything not covered by your co-op property’s master policy, as well as your personal items in the home. You also may want additional coverage for things like unit assessments, water backups, floods, earthquakes, and more.
What co-op insurance covers
Co-op insurance covers largely the same items you’d get with a home insurance policy. These include:
What co-op insurance doesn’t cover
Co-op insurance won’t cover everything. Your coverages depend on your insurance company and location. Read the fine print of your policy, as many exclude:
Water backup: If drain or sewer backups damage your property or belongings, standard policies typically won’t cover it. You’ll need add-on coverage for this.
Floods: Property insurance policies typically exclude damage from flooding. You need a separate flood insurance policy to cover these events.
Earthquakes: If you’re in an area prone to earthquakes, you might need a separate policy for this protection, as standard home policies exclude this peril.
High-value items: Co-op insurance will only cover your belongings up to an extent. If you have high-dollar items you want to ensure full protection for, you may want a floater to cover the additional value.
Be sure to read your policy carefully to understand what it does and doesn’t cover and any other important details.
Co-op insurance vs. home insurance: What’s the difference?
The main difference between co-op insurance and homeowners insurance is that one covers the entire structure and property — roof, garage, front yard, and more — while a co-op insurance policy just covers the interior of one specific unit.
Co-op insurance is a shared responsibility, with the master policy protecting the larger structure of the property and the individual owner policy protecting what’s within it. Homeowners policies are more comprehensive and cover both the structure and your belongings within it with just one policy.
Understanding master policies
When you own a co-op, you only own your unit in a larger community of cooperatives. For this reason, two insurance policies are typically in place: a master policy on the entire community and an individual policy that covers just your unit.
Master policies cover the common areas and features shared among all owners — things like the roof, elevator, stairs, sidewalks, parking lots, and more. They may also cover walls, floors, ceilings, and sometimes, original fixtures, though it depends on the property.
Beyond these basic elements, owners are typically responsible for any damage done. The applicable individual policies then cover these instances of damage.
Optional co-op insurance coverages to consider
In addition to the basics that a co-op policy typically comes with, you might want to think about some add-on coverages, depending on your property’s unique risk and your co-op bylaws.
For example, you may want these additional types of coverages:
Unit assessments: Co-op associations can sometimes charge assessments to all unit owners after damage to a shared space. Unit assessment coverage, also called loss assessment coverage, can help cover these costs for you.
Flood or earthquake insurance: Most policies exclude coverage for these natural disasters. If you’re in an area where either is common, you’ll want to consider a separate policy to cover you against any damage.
Water backup: Standard policies don’t cover water, sewer, and drain backups, so if you want protection against these events, additional insurance coverage is necessary.
Floater: Floaters can cover any higher-value belongings you might have and want extra protection for. This can include jewelry, collectibles, artwork, and furs.
Umbrella policy for liability: This adds extra liability protection, covering the costs of legal expenses if someone who injures themselves on your property sues you.
Co-op insurance for renters
When you’re renting a property, you’ll usually want a renters insurance policy in place. Your landlord might even require it.
Renters insurance covers your personal possessions within the unit, liability on the premises, and additional living expenses if something happens to the property and you’re displaced because of it.4
As a co-op renter, a master policy will protect the larger community you’re located in. Your landlord probably has an individual co-op policy on the unit, too. That won’t cover your personal belongings, and it won’t provide personal liability protection for your and other tenants. Having a renters policy in place can provide coverage for these items — and peace of mind.
Co-op insurance FAQs
If you’re looking for more information on co-op insurance and what it covers, check out the answers to these commonly asked questions.
What type of insurance do you need for a co-op?
Co-ops should have both a master policy and an individual policy in place. The condo association holds the master policy, which covers the larger property as a whole. Your individual policy covers the interior walls of your unit and personal belongings.
Who underwrites co-op insurance?
Homeowners can get co-op insurance from many major insurance companies. If you can bundle the policy with other insurance policies you have (say, your life insurance policy, boat insurance policy, or auto policy), you may also qualify for a discount.
What factors determine the cost of co-op insurance premiums?
The cost of co-op (and any property) insurance depends on a lot of factors. Your deductible, coverages, location, and insurance company are all major determinants. Rebuilding and material costs and your policy limits matter too, as do potential discounts you might qualify for (for instance, having an extra lock might get you a safety discount).
How does co-op insurance differ from condo insurance?
The terms “co-op insurance policy” and “condo insurance policy” are often used interchangeably and generally refer to the same type of coverage. With both, a master policy is in place — covering the larger co-op or condo community — as well as individual policies, which cover the separate units for each owner. Co-op and condo owners should always talk to an insurance professional to make sure they have the proper coverage for their unique insurance needs.
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