Shareholders are required 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; we therefore require that the insurance policy cover such eventualities as well. If you have not already done so, please provide the Board of Directors with a copy of your current insurance policy; send it to our managing agent.

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. Look under “Homeowners’ & Renters’ Insurance” in the yellow pages.

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.

Amount of Coverage. (1) Cost and deductibles — The cost of a policy will depend on your living situation and is based on such factors as the number of apartments in the building, the construction of the building, whether you live alone or with others and your relationship to them. (2) Noninsurable items — Some insurance companies will not insure certain items, such as stereo systems.

Loss Assessment Coverage: In addition to the typical homeowners insurance coverage, the Board requires that you purchase 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. As with other elements of your homeowners insurance coverage, you should shop carefully for the best deal.

Additional Insured: It is recommended that you list the following as an “additional insured”:

Nagle Apartments Corp.
c/o Blue Woods Management Group
5701 Arlington Avenue
Riverdale, NY 10471

That way, your insurance company will notify management directly when coverage is established, changed or discontinued.

Fine: A $250 fine will be levied every 1st of July if no proof of the required insurance coverage (including loss assessment coverage) is on file with management.

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