As a policyholder, your insurance should provide you with the right amount of protection for the lifestyle you live and the stuff you own.
While your co-op homeowners association may have an insurance policy that covers the property and building your unit is in, along with common areas, it doesn’t cover the stuff you own inside of your place – furniture, electronics, jewelry, etc. – or yourself (think: getting sued, or paying medical bills if people get hurt at your place).
All of that stuff adds up, and you’re going to want to make sure it’s protected.
For example: Let’s say your upstairs neighbor leaves the faucet on, and it ends up flooding your apartment, damaging your ceiling and your stuff. The cooperative insurance company will cover the damage to your ceiling and your personal items, and your co-op’s policy might cover the cleanup inside the walls.
In addition to your personal property (the stuff you own), there’s also liability to take into account. Bad things happen. That’s a fact of life. But the more you can prepare in advance for unexpected things, such as accidents or getting sued, the better you’ll be able to handle things when they arise.