Gotham Brokerage can help with a Manhattan co-op insurance quote and understanding how co-ops, condos differ
People unfamiliar with NYC real estate usually have a little trouble at first grasping one of the city’s most common types of residence: co-op apartments.
The terminology may confuse a newcomer to the city, but an apartment buyer needs to be clear when getting an NYC co-op insurance quote — and in all likelihood, the buyer will need more than one. Getting approved for a co-op apartment is a major pain, as we’ll explain, and co-op insurance quotes are just one part of a tricky equation.
First, the difference between condos and co-ops: In condos, residents own their apartments. In cooperative buildings, residents own shares of a co-op corporation that owns the building. The corporation assigns shares by space; the bigger the pad, the more shares the owner receives.
Condos and co-ops are similar in that both have monthly maintenance fees that cover building expenses including heat, hot water, insurance, staff salaries, and real estate taxes. In both cases, the building’s master insurance policy should cover damage to the exterior as well as common areas such as walkways, foyers, elevators, basements and roofs.
Keep in mind, though: The master policy does not cover individual apartments and the belongings inside them. Condo and co-op owners are responsible for that.
Each ownership model has its advantages and disadvantages. But — a big but — co-ops have boards that must approve all prospective apartment buyers. The approval process is far more rigorous than simply getting lender approval for a mortgage, and this is where you’ll probably want multiple NYC co-op insurance quotes.
UrbanDigs.com spells out what a would-be co-op owner faces, including proof of enough liquid assets after closing to satisfy the board. As for salary, many co-op boards want to see shareholders making at least four times their monthly expenses. If the mortgage and monthly fees total $5,000, for example, the board might require a minimum salary of $20,000 a month or $240,000 a year.
Still have nightmares about college application interviews? Get ready for the co-op board interview. Habitat Magazine is a great resource for what to expect. Additionally, a co-op board will want to see:
- Business and personal reference letters
- Bank and brokerage statements showing proof of all assets
- Employment letter
- Two years of tax returns
- Last two Pay Stubs
- Loan commitment letter
- Certified checks for processing/move-in deposits and other pre-closing needs
- At least one co-op insurance quote
Keep in mind that the co-op board also rules over who will buy your shares when you want to sell.
Hey, if it were easy, it wouldn’t be New York.
Having a local insurance brokerage help with the process can make the grueling process a little easier. At Gotham Brokerage Co., Inc., we’ve seen it all. We are a family-owned agency based in Lower Manhattan that’s served the five boroughs for more than 50 years and knows New York City and its neighborhoods. We can tailor co-op insurance policies to make sure you get the best coverage at the best price. We do the same for condo and renters insurance policies.
Whether you are ready for your first condo or co-op, or trading up, we’ll walk you through your insurance options and make sure your needs are met. Give us a call or send us an email if you’d like to learn more.