Multi-Family Complexes (Apartment and Condo)



Adjusters International Disaster Recovery Consulting

Multi-Family Complexes: (Apartment and Condo)

An In-Depth Look at Insuring the Many Exposures and Losses

By Paul O. Dudey, CPCU

There are three common types of apartment complexes: rental apartments, condominiums and cooperative apartments. As to risk and insurance matters, all three have many characteristics in common, but there are also important individual differences in the precise details of ownership, owner’s and resident’s ownership interest and legal rights and responsibilities, and the way they are insured for property loss, legal liability, and other loss exposures.

This article will describe several of these important differences, and will discuss in considerable depth how the three types of apartment complexes should be insured, as well as what kinds of losses may be encountered. We will also offer some helpful advice on loss prevention or control.

Rental Apartments

These are defined as multi-resident buildings owned by an individual, partnership or corporation, with...


For millions around the world, apartment or condominium living brings a dimension of simplicity and freedom to their lives not typically found in traditional home ownership. Maintenance issues, and the desire and ability to enjoy flexible, mobile lifestyles—including having a dwelling in more than one location—continue to make apartment and condo living more popular than ever.

But while simplicity may be one of the benefits of this lifestyle, another aspect that must not be oversimplified is the insurance program that protects the parties and properties involved. In fact, given the myriad conditions, relationships and exposures that can exist with multi-family complexes, making sure the right insurance program is in place merits even more foresight and planning than arranging a conventional homeowners policy.

In this issue of Adjusting Today , insurance expert Paul O. Dudey takes an in‑depth look at this important but often inadequately addressed subject, including the insurance risks and needs that should be considered by those who own, manage or reside in cooperative or rental apartments, or condominiums. He discusses the differences between the three, the various risks to which they are exposed, and the coverages available to protect them.

In addition to Mr. Dudey’s article, veteran public adjuster Scott Davidson draws on his extensive background to offer a companion piece focusing more closely on one of the most difficult types of losses to detect and settle, but one to which many multi-family complexes are exposed—hail storm damage. This is important and informative reading for anyone with an interest in these types of properties.

— Sheila E. Salvatore, Editor