The three basic types of multi-family housing arrangements are: landlord-tenant, condominium, and cooperative.
Each of these housing types have their own particular requirements when it comes to property insurance. In this blog, we’ll break down some basic differences between each.
In this arrangement, the landlord is usually the owner of the building and often the manager of the property. This means that the building is typically insured under a standard commercial policy. And while fixtures and appliances in the building are insured by the landlord, the tenant’s renter’s insurance will cover the personal property inside the unit. Because the landlord is the sole owner of the property, they and their insurer are responsible the full cost of the loss.
Condominium communities is a multifamily arrangement where residents own their individual dwelling units. The real property is owned collectively through an association. This means that the building structures are covered under the condominium association’s insurance policy. A unit-owner’s or resident member’s personal property is insured under a unit owner policy, while property of the condo association within dwelling units would be covered under a condo association’s policy.
With cooperative communities, co-op owners have an interest or share in the entire building and a contract or lease that allows the owner to occupy a unit. Like condos, building structures for co-ops are usually insured under a master insurance policy. However, unlike condos, co-op residents do not own their units. Also, with co-ops some insurance obligations for permanent fixtures may fall to the individual resident.
Need help navigating your multi-family property claim? We are here to help. We’re experts when it comes to understanding the intricacies of your policy, and have settled thousands of claims for every type disaster.
Have questions about your property insurance claim? Feel free to contact Stark Loss for more information about how a Public Adjuster can help.