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Because co-op and condominium owners share their building structures, two policies—a master policy and an individual policy—are required to fully protect all parties involved. Learn more about insuring a co-op or condo.

If you are purchasing a condo or co-op, the bank will require insurance to protect its investment in your home, and your co-op or condo agreement will likely require you to have insurance, as well. There are actually two different policies necessary to fully insure co-ops and condos—a master policy for the building, and an individual policy to cover you for liability, to protect your belongings and to insure any apartment structural elements that are not covered by the master policy.

Here’s what you need to know about each type of insurance.

The master co-op or condo policy

This is the policy that protects the entire apartment structure; the building management is responsible for it and its premiums come out of your maintenance fee or association dues. The master policy covers the common areas you share with others in your building like the roof, basement, elevator, boiler and walkways for both liability and physical damage.

In some cases, the association is responsible for insuring the individual condo or co-op units, as they were originally built, including standard fixtures. In these instances, the individual owner is only responsible for insuring alterations to the original structure of the apartment, like a kitchen or bathroom remodel.

In other co-ops or condos, the association is responsible only for insuring the bare walls, floor and ceiling. In the event of a disaster, the owner is responsible for elements like kitchen cabinets, built-in appliances, plumbing, wiring, bathroom fixtures etc.

It is important to know which structural parts of your home are covered by the condo/co-op association master policy and which are not, so you can properly insure your apartment through your individual policy. This information should be in your association’s bylaws and/or proprietary lease, which can usually be obtained from the co-op or condo board, or from the company that manages the building. If you have questions, talk to your co-op board, condo association, insurance professional or family attorney.

Your individual co-op or condo insurance policy

Your mortgage lender and your co-op or condo by-laws will likely require that you have your own insurance on top of the master policy because your ability to repair your apartment after a disaster protects the value of the unit.

An individual policy provides coverage for your personal possessions and for any structural elements not covered by the master policy if you are the victim of fire, theft or other disaster listed in your policy. Like a standard homeowners policy, you also get liability and, likely, additional living expenses (ALE) protections.

It’s a good idea to find an insurance professional who has experience in co-ops and condominiums. When selecting a policy, don’t forget to ask about available discounts, such as for extra bolts on the doors or additional fire alarm systems. If you insure your unit with the same company that underwrites your building’s insurance policy, you might also get an additional reduction in premiums.

To adequately insure your home and protect your assets, you may also want to consider the following, additional coverages. Consult your insurance professional for advice on what’s right for you.

• Unit assessment reimburses you for your share of an assessment charged to all unit owners as a result of a covered loss. For instance, if there is a fire in the lobby and all the unit owners are charged the cost of repairing the loss.
• Water backup insures your property for damage by sewer backups or drain back ups—these are not covered by either your co-op/condo policy or your flood policy.
• Umbrella liability is an inexpensive way to get more liability protection and broader coverage than is included in a standard condo/co-op policy.
• Flood insurance or earthquake insurance may be necessary if you live in an area prone to these disasters.
• Floater for additional coverage for expensive jewelry, furs or collectibles.

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Coverage needs change as circumstances in our lives change; an annual insurance review will ensure you have the proper coverage for your needs and budget.

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Do you or your business provide professional services or advice to other businesses or individuals? Could your counsel or service lead to losses by your client for which you could be held responsible? If so, you’ll likely want to purchase professional liability insurance, also known as errors and omissions insurance (E&O).

Claims not covered by general liability insurance that are covered by professional liability insurance include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

What types of businesses need professional liability insurance?

In some states, professional liability insurance is required, especially for attorneys and doctors. Legal and medical malpractice insurance policies are special types of professional liability insurance. Other professionals that should consider professional liability insurance include:

• Accountants
• Architects
• Engineers
• Graphic designers
• Information technology (IT) consultants
• Insurance professionals
• Investment advisors
• Management consultants
• Real estate agents and brokers
• Software developers

This list is not exhaustive. Consult with your insurance professional or inquire with your profession’s trade association to determine if you might need professional liability coverage.

What’s covered… and what’s not

There are two types of professional liability polices: claims-made and occurrence. Most professional liability insurance policies are “claims-made,” meaning that the policy must be in effect both when the event took place and when a lawsuit is filed for a claim to be paid. If, however, you change careers or retire, you may want to purchase an “occurrence” policy that will cover any claim for an event that took place during the period of coverage—even if the suit is filed after the policy lapses.

Professional liability insurance will pay the cost of legal defense against claims and payment of judgments against you, up to the limit of the policy. In general, coverage does not extend to non-financial losses or losses caused by intentional or dishonest acts. Other fees, such as licensing board penalties, may also be included. Policies will generally have a deductible ranging from $1,000 to $25,000. The amount of professional liability insurance you will need and how much it will cost depends upon the size of your business and the level of risk it poses.

You may be able to include professional liability coverage in a Commercial Package Policy (CPP) as an endorsement. Note, however, the professional liability coverage is not included in an in-home business policy or Business Owners Policy (BOP).

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Returning to your home after a flood is a big part of getting your life back to normal. But consumers and small businesses may be facing a new challenge: mold. What can you do to get rid of it? How do you get the mold out of your home or office and stay safe at the same time? CDC has investigated floods, mold, and cleanup, and offers practical tips for homeowners and others on how to safely and efficiently remove mold from the home.

In 2005, thousands of people along the Gulf Coast were faced with cleaning up mold from their homes after Hurricanes Katrina and Rita. One of our first concerns was to let homeowners and others know how they could clean up mold safely. After Hurricane Sandy in 2012, we teamed up with other federal agencies to provide practical advice on mold cleanup. This guidance outlines what to do before and after going into a moldy building, how to decide if you can do the cleanup yourself or need to hire someone, and how you can do the cleanup safely.

Prepare To Clean Up

Before you start any cleanup work, call your insurance company and take pictures of the home and your belongings. Throw away, or at least move outside, anything that was wet with flood water and can’t be cleaned and dried completely within 24 to 48 hours. Remember, drying your home and removing water-damaged items is the most important step to prevent mold damage.

Protect Yourself

We offer specific recommendations for different groups of people and different cleanup activities. This guidance educates people about the type of protection (think: gloves, goggles, masks) you need for different parts of your mold cleanup. It also identifies groups of people who should and should not be doing cleanup activities.

Be Safe With Bleach

Many people use bleach to clean up mold. If you decide to use bleach, use it safely by wearing gloves, a mask, and goggles to protect yourself. Remember these four tips to stay safe:

• NEVER mix bleach with ammonia or any other cleaning product.
• ALWAYS open windows and doors when using bleach, to let fumes escape.
• NEVER use bleach straight from the bottle to clean surfaces. Use no more than 1 cup of bleach per 1 gallon of water when you’re cleaning up mold.  If you are using stronger, professional strength bleach use less than 1 cup of bleach per gallon of water.
• ALWAYS protect your mouth, nose, skin, and eyes against both mold and bleach with an N-95 mask, gloves, and goggles.  You can buy an N-95 mask at home improvement and hardware stores.

You can take steps to keep yourself and others protected while cleaning up mold after a flood. Make sure to follow CDC’s recommendations so you can return home safely.

Resources

• Homeowner’s and Renter’s Guide to Mold Cleanup After Disasters
• Population Specific Recommendations for Protection From Exposure to Mold
• Basic Facts About Molds in the Environment
• Cleanup and Remediation