These housing styles are each covered by two insurance policies. One policy is purchased by the owners' association or cooperative board for the entire building or complex, for which you pay a prorated share of premiums as part of your monthly maintenance fee. You purchase the other to cover your own apartment and its furnishings. There is a special insurance policy designed for condo owners and renters' insurance coverage for coop residents.

Those individual policies are as important for you as insurance is for the master association to carry for common areas. If there is a problem in your unit, such as damaged carpeting from that ubiquitous burst pipe, you will need your own insurance coverage. The condo or co-op's policy will not help you.