Cooperative apartments and rental apartments have similar insurance needs (not nearly as complex as condominiums) and with only a few differences. In both cases, the residents insure only their own personal property and personal liability, and the apartment owners insure the buildings and any personal property belonging to the apartment owners—furnishings in a clubhouse, exercise facility, etc.
The major problem in both cases is in identifying the respective responsibilities of landlord and resident in such areas as damage to the premises, repair and maintenance, and cancellation or continuation of the lease after loss.
Co-op owners also usually have the same potential as condominium unit owners for individual assessment to make up for deficient income by the association. As with unit owners, this can be covered by insurance if the assessment is due to inadequacy of a covered cause of loss.
Municipal building and zoning ordinances, along with county, state, and federal regulations, have proliferated in recent years, creating a potentially severe exposure for apartment complexes covered only by basic property insurance.
If there have been any significant changes in building or zoning laws since the units were built that would:
Three coverages are available: