When I bought my apartment in 1997, I insured it for about twice the purchase price and have continued with the same insured value every year since then. With the escalation of real estate values, should I boost my insurance coverage to reflect this increase? As I understand it (and maybe I'm wrong), the main purpose of insuring a coop apartment is to reconstruct the interior in case of a fire, or to cover costs if someone sues me after claiming an injury on my premises. Any thoughts on all this?

I was told I just have to insure the "stuff" in the apt or for the injury. The value, walls, etc are all insured by the building (board, Equity?).

I might be dead wrong though.

Jake

yeah i think everything attached to the building is covered by building insurance. i just have coverarge for stuff and injury - all for just $195 a year. if your paying much more then u may have double coverage

geico quoted me a similar number for coverage. they indicated that its wise to get coverage to cover the cost of repairing damage to others. in case you damage other apartments with water or fire.

I think I pay like $12 a month or something like that.

Jake

This insurance issue has always been a little fuzzy, but after talking to Marianne and my insurance carrier, my understanding is different than yours.
In addition to covering the contents and personal injury, you need to cover reconstruction of the interior of the apartment. The coop does have insurance, but it only covers up to the drywall. So, if you have a fire in your apartment, you would be responsible for rebuilding the interior (e.g. bathroom, kitchen, floors, ceilings, closets, etc.).

So, you don't need to insure the entire value of the apartment but only what it will cost to rebuild out the interior.

Of course, if your apartment is damaged by water/fire originating from another apt., the coop's or another shareholder's policy should cover your dammage.