Five Things You Need to Know About Co-op Home Insurance
Many Canadians dream of owning a home one day; however, buying a property isn’t always a feasible choice, especially if you want to live in a major city. That’s why more and more Canadians are investing in co-op housing opportunities.
Co-op housing (short for cooperative housing) is an excellent option for individuals who aren’t ready to buy yet or people who can’t seem to find the perfect rental property.
But, it would be remiss to bring up co-op housing without mentioning co op home insurance. Purchasing co-op housing insurance is an extremely wise decision for homeowners who want to ensure that their personal belongings, among many other aspects of the property, are financially protected.
START A QUOTEContinue reading to learn more about five of the most essential facets of co-op home insurance that you should know before committing to a big purchase.
What is co-op housing in Canada?
It’s challenging to learn about co-op housing insurance if you don’t know what a housing co-op is in the first place! So, let’s quickly review the basics — what is co-op housing?
In short, a housing co-op is a property that is treated like a corporation. Instead of purchasing or renting a unit in the property, you have to buy shares of the corporation. Various units have different share-related requirements (this is often based on the size of the living space).
Housing co-ops are generally more affordable than rental units because the residents don’t have to deal with marked-up expenses or hidden fees.
In most cases, you aren’t able to profit off of your housing co-op shares by selling them on the open market. However, you may be able to sell your shares if you obtain approval from the housing co-op board.
What is co-op housing insurance and why is it important?
As mentioned earlier, co-op housing insurance is vital for individuals who want to protect their personal belongings. But, precisely how does co-op housing insurance protect everyday Canadians?
Simply put, co-op housing insurance financially protects the confines of the co-op housing unit, not the entire building. So, if something happens to your living space, you may be able to receive coverage through your co-op housing insurance policy.
Difference between a condo and co-op housing?
Co-op housing units often get mixed up with condo units (occasionally referred to as strata units), so we understand why many people get confused.
But, there is a crucial difference between the two. When you buy a condo, you’re purchasing the actual unit. In contrast, you’re technically just buying the shares when you buy a co-op housing unit.
Difference between condo insurance and co-op housing insurance?
Now, you may be thinking to yourself, “co-op housing insurance seems very similar to condo insurance,” and you’re right.
Condo and co-op housing insurance are almost identical — they both protect the confines of your unit from unforeseen acts but don’t protect any outer portions of the property (hallways, common areas, etc.). However, due to the fact that they are distinct types of properties, they require unique types of coverage.
If you can’t decide between a condo or a housing co-op unit, you can click this link to learn more about what you should consider before buying a condo in Canada.
What does co-op housing insurance protect in Canada?
Co-op housing insurance financially protects owners in the following ways:
- Protects contents of the unit (i.e. any moveable object)
- Covers liability-related fees
- Additional living expenses related to an incident
Here’s a quick example of how co-op housing insurance can protect you:
Your neighbour accidentally starts a residential fire, which eventually spreads to your housing unit. The fire causes thousands of dollars worth of smoke damage to your furniture, decor and personal property. Instead of covering the repair or replacement costs by yourself, you can submit a co-op housing insurance claim with your provider. After assessing the situation, your insurance provider will likely cover all or a portion of the related expenses.
What doesn’t co-op housing insurance protect in Canada?
You should be aware that co-op housing insurance doesn’t cover improved or modified aspects of the unit.
Here’s another quick example:
You decide to remove and replace all of the baseboards in your co-op housing unit, which costs you over $1,000. A few months later, a pipe bursts in your home, which damages your brand-new baseboards.
Unfortunately, due to the fact that baseboards aren’t considered “moveable objects,” you likely wouldn’t receive any compensation from your insurance provider.
That’s why many co-op housing unit owners like to purchase traditional home insurance and co-op housing insurance. Doing this ensures that you’re protected from unforeseeable events that are out of your control.
Want to save on home insurance in Canada?
Whether you’re looking for co-op housing coverage, basic home insurance or anything in between, the Surex team has you covered.
At Surex, your protection is our top priority — that’s why our insurance brokers work night and day to find you the best (and cheapest) home insurance quotes in Canada! Our brokers can set you up with upwards of ten competitive home insurance quotes in just ten minutes.
Contact one of our team members today to learn more about how we can help you save on insurance in Canada.
How much does co-op housing insurance cost?
It’s difficult to pinpoint the exact cost of co-op housing insurance due to the fact that the price is generally based on unit-specific factors, like size and location.
Thankfully, co-op housing-related expenses, like insurance, are often quite affordable, thanks to funding from local or federal governments.
Do you have unanswered questions about co-op insurance Canada?
We know that getting co-op housing coverage can be confusing, even for people who have purchased insurance in the past.
If you have questions about a specific aspect of co-op housing insurance, or would simply like to learn even more, don’t hesitate to reach out to one of our experienced insurance brokers. Our insurance brokers have seen it all — when it comes to insurance, that is. This invaluable experience allows our brokers to find you the very best quotes quickly and efficiently.
