I require shareholders to provide proof of insurance, which they are responsible to obtain on their own. My reasoning is that when 2A leaks on 1A due to personal negligence (bathing 3 kids at once), the coop is not responsible for this repair. I can then, without argument from or between the shareholders, inform them that this is a situation for their own insurance companies to work out. Management and the board are free from arbitrating this shareholder - shareholder event. Of course I follow up to ensure an amicable resolve.

Mortgage companies require continued insurance on the investment. Your manager should have a copy on file from the closing; you can have him/her just maintain a spreadsheet, and annually remind shareholders to send the updated proof.

On another note, it is illegal to force renters to purchase insurance. I always "highly recommend it" and assist in pointing them to a broker (we use The Registry – same company used for credit/background checks). The rational is the same as with the shareholder.

All that said, I agree with the other posters, in that the Board should not take on this responsibility (and added possible liability if something goes wrong). Use your manager if you do this, and have it be a management policy, not a Board policy.

Good Luck
~AR