Cooperative insurance is a policy contracted by a housing cooperative, where members pool resources to provide insurance coverage or receive a discount from a third-party insurer. Members have a say in building management and can decide who moves in. The policy can cover the entire building and personal possessions. The Co-operative Insurance is a British insurance company owned by policyholders.
Cooperative insurance is a set of policies contracted by a housing cooperative. This is an organization that owns a property or properties, and each member of the organization occupies a part of the property. A benefit of this setup is that members can pool their resources to provide their own insurance coverage or receive a volume discount from a third-party insurer.
A typical configuration for a housing cooperative would be an apartment building. Strictly speaking, the cooperative would own the entire building, and each member would have an agreement allowing them to live in an apartment. This is slightly different from the more common housing setup where people own their apartment outright, but have no interest or interest in the rest of the building.
There are some key differences between a housing cooperative and standard apartment ownership. For example, members as a group will be able to decide who can move into the building, subject to discrimination laws. This power is not available to owners of standard apartments. Membership within a cooperative also gives people more of a say in how the building is managed and maintained.
In its simplest form, cooperative insurance will simply involve each insured who agrees to take out home insurance with the same company. This will mean that the total business available to that company is much larger. In turn, this may mean that it is possible to negotiate more affordable premiums.
The most common and complex form of cooperative insurance is when the members, acting as a group, take out a single policy that covers the entire building. In some cases, this policy will cover personal possessions, but the main purpose is to cover risks related to the building as a whole. In addition to damage to the building from fire or natural disasters, the policy may also cover legal costs, such as liability for injuries caused to visitors, such as someone slipping on a community ladder.
The phrase co-operative insurance can also refer to a British insurance company trading as The Co-operative Insurance. This has been in operation since the 19th century, when it began by providing fire insurance. Today, the name does not refer to the housing cooperatives, but to the fact that the company is owned by its clients, the policyholders. Profits are distributed to clients in the form of a cash payment or a discount on future premium rates.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
