A Complete Guide to Cooperative Housing Society Insurance
Cooperative housing society insurance serves as an essential line of defense for residential neighborhoods, providing full protection against a myriad of risks and damages to the building and its members. Cooperative housing society insurance is designed specifically for housing societies and protects them against everything from natural disasters to third-party liabilities.
In this guide, we will go in-depth into how building insurance for housing society is needed, key features of cooperative housing society insurance, the benefits of such insurance, and the exclusions of such policies to ensure that your housing society is protected.
Key Features of Cooperative Housing Society Insurance
1. Full Coverage
Cooperative housing society insurance provides full coverage of all common areas, building structures, shared facilities, elevators, clubhouses, swimming pools and parking areas.
Also Read: What Is Common Area in an Apartment? Rules & Importance
2. Third-Party Liability
Cooperative housing society insurance includes liability coverage for third-party injuries or damage that take place in the housing society premises.
3. Flexible Plans
Cooperative housing society insurance policies can be customized to suit your housing society’s needs that can also include extra coverage for fire, theft and machinery breakdown coverage.
4. Easy on The Pocket
Cooperative housing society insurance is inexpensive compared to individual policies and it is designed to accommodate housing societies of any size.
5. Add-On Covers
You can extend your cooperative housing society insurance with optional add-ons for terrorism insurance, employee accident insurance, or loss of rent.
What Types of Damages Does Housing Society Insurance Cover?
A Housing Society insurance policy will take care of:
1. Natural Calamities
This is insurance against losses from natural disasters like earthquake, flood, cyclone, or storms. As an example, if a flood occurs, damaging the structural base and creating cracks in the building that need to be repaired to provide safety, your society building insurance could help cover those repairs.
2. Fire and Explosion
Housing society building insurance includes building damage from fire, lightning, or gas explosions. The common scenarios are electrical short circuits causing a fire, or a gas cylinder explosion taking place in a common kitchen area. These forms of accidents and incidents tend to cause significant damage to walls, ceilings, and various structural or functioning components of a society, which can be covered by your insurance policy.
Also Read: Ten Fire Safety Measures for Housing Societies
3. Burglary and Theft
Your housing society insurance will cover most common property that has any loss or damage caused to it, such as loss or damage to furniture, CCTV cameras, or gym equipment etc. For example, if a break-in occurs, resulting in a theft of equipment, or vandalism in the society’s clubhouse or common area, then your society building insurance will reimburse the loss.
4. Machinery Breakdown
Provides repair or replacement costs for machinery like elevators or generators. For example, if a power surge occurs and damages the society’s generator, housing society insurance will provide the repair or replacement cost.
5. Acts of Vandalism
Coverage for loss from riots or vandalism. If, for instance, a protest turns violent and windows are smashed or gates are damaged, housing society insurance will cover the costs.
6. Accidental Damage
Building insurance for housing society would cover unfortunate incidents like broken glass or water damage. For example, a pipe burst, and the walls/ceilings of the common areas suffered water seepage.
7. Pest Infestation
Some society building insurance policies also cover damages by termites or by rodents eating electrical wires in common areas although they probably wouldn’t be written in.
8. Storm and Wind Damages
Rooofs can get blown away in storms, or trees can land on a society’s property during storms. Obtain coverage under housing society insurance for those costs.
What is a Housing Society Insurance Premium Calculator?
A housing society insurance premium calculator is an online tool to help estimate an insurance premium a cooperative housing society pays to insure its buildings, common areas, assets, and liabilities. It provides management committees or resident welfare associations with a clear understanding of the cost needed to invest in a policy that covers all concerns specific to a society, and allows insurance providers to account for unique community risks.
How the Housing Society Insurance Premium Calculator Works
The typical housing society insurance premium calculator needs the following parameters:
| Parameter | What It Means |
| Built-up area (sq. ft.) | Total area of the property/building(s) you wish to insure |
| Sum insured | The total value you want to insure (e.g., building cost, equipment cost etc.) |
| Type of coverage required | Covers comprehensive, third party liability, natural disasters, theft etc. |
| Location of property | Insurance premiums vary by risk zones (i.e. flood or earthquake zones). |
| Number of units/floors | To help assess the scale of facilities and some probability of risk exposure |
| Age of the building | Older buildings can attract higher premiums than newer ones because the risk is inherently higher |
Also Read: Bylaws – Co-operative Housing Society Rules and Regulations
Society Insurance Claims for Cooperative Housing Society Insurance: A Complete Summary
If a cooperative housing society suffers a loss through fire, theft, natural perils, or liability claims, it may make society insurance claims under its housing society insurance policy in order to recover/reimburse financial loss. The society insurance claim process allows for compensation for common assets, property structures, and third-party liability as outlined in the policy.
What Can a Cooperative Housing Society Claim?
A cooperative housing society can make society insurance claims for:
| Covered Risk/Event | Claimable Losses |
| Fire flood earthquake storm | Structure of building, building walls, wiring, lifts, and other infrastructure |
| Burglary or theft | Loss or damage of society-owned equipment (generators, solar panels etc.) |
| Third-party liability | Medical or legal expenses if a visitor/vendor is injured on society premises |
| Lift malfunction/ equipment breakdown | Repair or replacement of lift or group information or other common utilities. |
| Employee accidents | Compensation for injuries to a staff like guards, cleaners, service or maintenance personnel. |
The Procedure to Apply for Cooperative Housing Society Insurance
Applying for building insurance for housing society consists of these few very simple steps:
1. Identify Needs
Assess the needs of your housing society – based on size, location, and amenities.
2. Compare Policies
Research and compare housing society insurance policies from reputable providers.
3. Get Quotes
Get quotes for premiums and compare coverage, exclusions, and add-ons of the housing insurance policies you are considering.
4. Get Documentation Ready
Prepare any documentation needed to apply, such as registration certificate, details of the property, and any existing insurance documents (if applicable).
5. Application
Complete the application form and submit it to your insurance provider, along with required documentation.
6. Policy Issuance
Once the insurer has considered and accepted your application for housing society insurance, the policy is issued.
Benefits of Building Insurance for Housing Society
1. Financial Security
Housing society insurance provides financial security to the funds of your society because it will cover the cost of repairs or replacement of significant portions of your property.
2. Decreased Worry
Housing society insurance provides members with decreased worry, as they will know the society is financially prepared if something unexpected does occur.
3. Fulfills Legal Requirements
Some states require that housing societies maintain insurance as part of compliance with legislative requirements.
4. Liability Exposure
Housing society insurance protects the society from liability arising from damages to persons or property.
5. Better Property Value
A building that is well covered by insurance is better positioned to attract buyers or tenants.
Exclusions in Housing Society Insurance
Housing insurance, while comprehensive, does have exclusions, including:
1. Normal Wear and Tear
Housing society insurance does not cover damage resulting from aging or a lack of frequently performed maintenance. For example, if the paint is peeling, the flooring worn down, or the pipes deteriorated over time with normal use, these damages would not qualify for a claim. However, societies can prove this is the case with detailed and accurate maintenance log and documentation, and perhaps hiring a maintenance professional to evaluate, for example, if the damage occurred due to neglect versus unforeseen events.
2. Existing Damages
Housing society insurance will exclude damages that existed before the date of policy inception. If for example, the building has existing cracks or existing leaks, the existing damages would not qualify for claims.
3. Intentional Damages
Housing society insurance does not cover losses associated with intentional misconduct/negligence. If for example, a member of the community vandalizes property because of a dispute between them and another community member, the insurer would likely deny claims for such events.
4. Nuclear Event and War-Related Damages
Housing society insurance does not cover claims related to a nuclear event or acts of war. These are considered extraordinary circumstances that normally would not be included in any insurance policy standard provisions.
5. Personal Items
Insurance for a housing society does not cover an individual member’s personal belongings. For instance, if a member’s laptop or furniture is damaged by fire, the person needs separate personal insurance covering the loss.
6. Claims for Negligent Maintenance
When the damage arises from negligent maintenance, for instance, a poorly maintained elevator breaks down, or if a member has been aware of a termite infestation and has not acted on it, the insurance claim from the housing society could be denied. To clarify, societies should maintain schedules and records of regular maintenance to demonstrate that they exercised due diligence in maintaining the space.
How to Determine Premiums for Housing Society Insurance
Premiums for cooperative housing society insurance depend upon the following:
1. Sum Insured is the estimated cost to reinstate the building and common facilities.
2. Add-On Covers premiums for housing society insurance will be higher if the member requires additional cover such as terrorism or earthquake insurance.
3. Location Societies in areas of high-risk (Earthquake prone areas or coastal and flood zones) may incur higher premiums on housing society insurance.
4. The Age of the Structure Generally older buildings incur a more costly insurance premium due to the risk of damage increasing with age.
5. Policy Period Premiums may vary based on renewal requests for long-term insurance contracts.
Types of Insurance Plans for Societies
1. Standard Fire and Special Perils Policy
This is an essential yet basic insurance plan for housing societies. This housing society insurance provides coverage for fire, lightning strikes, explosions, direct damage from natural causes like floods or cyclones, and dampness-related losses. For example, if the structure is damaged because of earthquake tremors, the standard fire coverage plan would cover the costs of rebuilding or repairing the structure.
2. Burglary and Theft Insurance
This policy is an insurance plan for housing societies that will cover protection against theft or burglary of common property, and assets such as furniture, gym equipment, and electronics. For example, if a thief breaks into the clubhouse, and steals equipment, this plan would reimburse the society for the loss it incurs.
3. Machinery Breakdown Insurance
This insurance for housing societies is designed to cover the costs of repairs or replacement for important pieces of machinery including elevators, water pumps, generators etc…For example, if the society’s generator experiences a breakdown during humid hot weather, caused by a surge in power supply. Coverage will allow for repairs to be done quickly and with minimal cost.
4. Public Liability Insurance
This insurance coverage plan is for housing societies, and is specific to provide protection to the society from legal claims for injury, loss or damages against third parties while within the complex. For example, a visitor slips in the parking area, and files a claim for damages/compensation, this plan willlor for the society to cover legal costs, and provide compensation.
5. Terrorism Cover
In housing society insurance, coverage for terrorism is an optional add-on to cover damages from terrorist activities. This is important in high-risk urban areas.
6. Employee Compensation Insurance
Housing society insurance provides employee compensation insurance, which provides financial insurance for work-related injuries or accidents for employees, such as security guards, housekeeping, and maintenance.
7. All-In-one Comprehensive Plans
These plans took care of everything – fire damage, theft, etc. They also offer coverage for damage to the building, machinery breakdown and even liabilities to third parties. They fit well for larger societies that have a lot of different housing needs.
Cooperative Housing Society Insurance: Plans and Suggestions
There are many well-reputed insurers in India that offer insurance policies tailored for housing societies. Opt for a plan that meets the needs of your society and assess the coverage your society is suited to, and figure out how you will not overpay.
Society Management System by NoBrokerHood
NoBrokerHood’s society management system can be a useful tool to simplify and streamline the management of insurance for housing societies of cooperative societies. The app provides the management committee many tools to functionally manage insurance policy document storage, policy renewal dates, premium payment schedules, reducing the risk of missed deadlines or lost documentation. Residents enjoy the added benefit of an easy and convenient central communication channel to keep them informed about coverage requirements, claims process and reminders about upcoming renewals. As a policyholder, the app can also help you submit a claim by allowing you to instantly report the incident and upload photos or documents, along with liaising with insurers, which can reduce the time involved in the policy claim process. The app allows for ease of access by using secure digital records to protect your association insurance policy. NoBrokerHood will also provide timely alerts to ensure your housing society insurance policies remain active, up to date and easy to access, taking away from administration burden and increasing transparency.
| Society Accounting System |
| Visitor Management System |
| Boom Barrier |
| Apartment Management Software |
| Housing Societies |
| Parking Management System |
| CCTV Cameras in Apartments |
| EV Charging in Apartments |
FAQs
1. What is cooperative housing society insurance?
Insurance for cooperative housing societies covers the building and “common areas” against risks like fire, natural disasters and third-party liabilities.
2. Does insurance for a housing society cover the individual flats?
No. Generally, insurance is for common areas and facilities. Members will want separate insurance for their property.
3. How can I reduce the premium for housing society insurance?
Choose the minimum coverage option, remove optional add-ons, and maintain the building properly to avoid risks.
4. Is terrorism cover standard in a cooperative housing society insurance policy?
No, terrorism is usually an add-on and is not included as standard in a cooperative housing society insurance plan.
5. Can housing societies make a claim for repairs if the damage is due to a lack of maintenance?
No, damage caused by lack of maintenance or normal wear and tear is excluded.