My Co-Op, the largest In NYC, recently past a regulation requiring homeowner insurance with minimum dwelling coverage of $25,000 and personal liability coverage of $300,000. Noncompliance of this regulation will result in a $25 a monthly fine for every month without insurance.

The Co-Op claims that the Master Insurance Policy covers build out up to the interior walls, stock kitchen cabinets and bathroom fixtures. The Co-Op also claims that the insurance requirement was to ensure that those units with extraordinary upgrades beyond stock quality be covered.

I inherited my unit from my parents. NO improvements were made to our unit for over 40 years other than painting and normal replacements. There were NO valuable upgrades.

Why should I be forced to purchase insurance when the the Master Policy covers the build out? I am perfectly fine living in an apartment with stock cabinets and fixtures.

Now, our Co-Op has been grossly mismanaged. For our 5 1/2 room unit, the Co-op fixed a $250,000 resell price. This sell price is unattainable unless the unit is renovated to include fancy upgrades. I believe that this is the motivation for the board to institute this regulations- force owners to renovate and upgrade to maintain minimum resell value.

After shopping for HO6 insurance, I find it more advantageous to paid the $25 penalty per month than to purchase insurance. I would be saving hundreds of dollars!! All HO6 insurance includes coverage I don't need- personal property, loss of use, personal liability, medical and others to numerous to name. And, I can't strip these extra coverage of and just buy what I need which is the dwelling coverage of $25,000. If I were allowed to purchase just the dwelling coverage, it would be about $100 a year and I would be fine with this.

I do not need personal property insurance as i can easily replace these items. I don't need personal liability insurance because I have an umbrella policy.

My question is this. Can I just pay the fine?

Thanks in advance for any suggestion.