ADJUSTERSINTERNATIONAL.COM 3 Coverage provided in renters/unit-owners policies for additional living expenses incurred due to inability to access apartment/unit as a result of physical damage by a covered peril. “Condominium community” refers to a setting where people individually own their dwelling units and collectively own other real property through an association. Owned collectively by a condo association or cooperative and typically insured under a condo CP policy. Coverage for additional cost to bring undamaged parts of a building into compliance with building ordinances is available for property covered for replacement cost under a CP policy; similar coverage for property insured for actual cash value is available by endorsement. “Landlord” refers to a building’s owner and its managing agent. “Tenant” refers to individuals leasing living space. Owned entirely by the building owner and typically insured under a standard commercial property (CP) policy. Generally owned and insured by the landlord. Renters insurance typically covers a tenant’s “additions and alterations.” Landlord’s property (e.g., major appliances, if included) covered under the landlord’s CP policy. Tenant’s property insured under a renters policy. Landlord selects between named perils (basic or broad) or open perils (“special”). Tenants personal property typically insured on a named- perils basis. N/A Landlord and its insurer bear the full cost of losses. “ CP business income coverage available for loss of rents due to physical damage by a covered peril. N/A Landlord-Tenant Condominium Community Cooperative Community “Cooperative community” refers to a setting where individuals own a share of a residential corporation and the right to occupy a unit. Building structure (fixtures, systems and loadbearing walls) Definitions (for purposes of this table) Permanent fixtures in dwelling units Personal property in dwelling units Insured causes of loss (“perils insured against”) Assessments on residents for damage to building property Assessments on residents for insurance deductibles Building owner’s loss of revenue (when all or part of a structure cannot be occupied) Resident’s loss of use (when a unit cannot be occupied) Increased Cost of Construction: Building Owner Increased Cost of Construction: Residents Ownership and insurance obligations subject to terms of the condominium master agreement. Can be insured under the association’s CP policy or individual unit-owner’s policy. Typically owned by the cooperative association and insured under the association’s CP policy. In some cases insurance obligation may fall to the unit-owner. A unit-owner’s or resident member’s personal property is insured under a unitowners policy. Personal property of a condo association or co-op within dwelling units would be covered under a condo CP policy. Association and unit owners decide between open and named perils coverage. Unit-owners policies typically include limited amounts for paying a unit-owner’s share of an association loss assessment. Some unit-owners policies provide limited amounts for paying a unit-owner’s share of an association’s insurance deductibles. CP business income coverage available for loss of assessments due to physical damage by a covered peril. A stated percentage — typically up to 10 percent of the dwelling property limit — can be devoted to additional costs to bring undamaged property into compliance with building ordinances. Property Ownership and Insurance in Multi-Unit Housing
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