Condo vs co-op
In a condo, you own the unit and a share of common elements. In a co-op, the corporation owns the building and you own shares plus the right to occupy your apartment. Many insurers write co-op coverage on the same unit owners form used for condos.
What co-op boards ask for
- Proof of coverage at move-in and renewal
- Minimum liability limits set by the board
- Coverage for alterations under an alteration agreement
- Naming the corporation or managing agent as an additional interest
Improvements and alterations
Renovations made under an alteration agreement are usually the shareholder's responsibility to insure. Keep invoices so you can document their value.
Who insures what in a co-op
The co-op corporation insures the building through its own policy. The proprietary lease and house rules spell out which parts of the apartment the shareholder must maintain and insure, often the interior finishes, fixtures, appliances and any improvements. Because each building writes its own rules, two apartments in the same neighborhood can have very different responsibilities.
Liability and water damage
In multi-unit buildings, many claims start with water: a washing machine hose, a bathtub overflow or a failed pipe in a wall. If water from your apartment damages a neighbor's unit or common areas, the board or the neighbor may look to you for repairs. Personal liability on a unit owners policy may respond if you are legally liable, while damage inside your own apartment is handled under your building and contents coverage.
Selling or subletting
Boards usually require the incoming shareholder to show proof of insurance before closing. If you sublet with board approval, tell your insurer, as the occupancy change can affect coverage the same way it does for a rented condo.
Documents to gather
- Proprietary lease and house rules
- Any alteration agreement and renovation invoices
- The building's insurance certificate showing the board's requirements
Frequently asked questions
Does the co-op's building policy cover my renovations?
Often not. Check the proprietary lease and building policy, and insure improvements on your own policy.
Do co-op boards set minimum liability limits?
Many do. Check your proprietary lease or ask the managing agent before you request quotes.