Member owned & operated for their benefit

What to expect

Closing Procedure

As we all know, Kramer Homes is a non-profit cooperative corporation in which each member owns a share of the corporation. Ownership entitles members to occupy their unit under an occupancy agreement, although the structure is owned by the corporation. Because each member “shares” ownership with the cooperative, it is in everyone’s interest to make sure all property is properly insured. Information obtained at the National Association of Housing Cooperatives conference indicated that it would be in the best interest of all cooperatives if each member carried their own Condominium/Cooperative-Unit insurance policy to work in conjunction with the cooperative’s association policy. The member’s policy generally provides coverage for personal property of the member, unit improvements, and any physical structure or fixtures deemed the responsibility of the member as outlined in the policy book, personal liability and property damage.

HO6 Policy

Insurance Requirement for Membership

Members of Kramer Homes Cooperative Inc. are required to carry unit owner’s insurance on their unit. The insurance policy is officially an H06 Policy. Coverage is as follows:

1. 1-bedroom units require a minimum dwelling coverage of $55,000.00 and personal liability of $100,000.00.
2. 2-bedroom units require a minimum dwelling coverage of $65,000.00 and personal liability of $100,000.00.
3. 3-bedroom units require a minimum dwelling coverage of $75,000.00 and personal liability of $100,000.00.

*ALL policies must list Kramer Homes Cooperative as an additional interest/shared owner of the members unit. By doing this, Kramer Homes will be notified of cancellation of any member’s policy. Immediate steps will be taken to avoid any lapse in insurance coverage. ALL policies must include LOSS ASSESMENT
coverage in the amount of $10,000.00.

In the event of flood or fire, your policy may not completely cover the replacement of Pergo flooring, hard wood flooring, linoleum, carpeting, temporary housing or other items. If dwelling coverage is insufficient, the replacement of these items remains your responsibility. It is highly recommended that you
speak with your insurance agent to determine if the above minimum coverages are sufficient for your situation, and to purchase additional insurance as necessary.

*Please note that the minimal coverage listed above on the “dwelling coverage” is determined by the cost to rebuild or repair the physical structure and fixtures in the unit that you occupy; e.g. cabinets, counter tops, sinks, faucets, vanity, flooring, etc. It is strongly recommended to have additional coverage to replace your personal property; e.g. clothes, furniture, jewelry, firearms, electronics, etc. Personal Liability insurance is about financial protection – for you and your family. The personal liability coverage within your H06 policy provides coverage for bodily injury and property damage sustained by others for which you or covered residents of the unit are legally responsible.

Closing Checklist

What you will need at Closing

New members can download and complete the Closing Checklist and call our office at (586) 757-1240 to schedule their Closing. The Closing Checklist includes:

Address

CENTER LINE MI 48015

• 1st check amount (upgrades + $500 closing costs) $X,XXX.XX
• 2nd check amount (prorated carrying charge) $XXX.XX

Acceptable forms of payments are : CHECK, MONEY ORDER, or CASHIERS CHECK – NO CASH  ACCEPTED

Proof of H06 Insurance policy – Kramer Homes Co-Op Inc. MUST be listed as an additional interest.

• $ XX,000.00 DWELLING COVERAGE
• $100,000.00 PERSONAL LIABILITY COVERAGE
• $10,000.00 LOSS ASSESSMENT COVERAGE

Copy of vehicle registration(s)

Pets must be registered by the next carrying charge payment.