Escrow & Title
In New York, a 'co-insurance' provision in a property insurance policy means:
ATwo insurance companies share the risk
BThe property owner must maintain insurance equal to a specified percentage of the property's replacement value (usually 80%) or be subject to a penalty on claims✓ Correct
CThe lender and property owner share the insurance premium
DThe tenant and landlord share the cost of insuring common areas
Explanation
A co-insurance clause in a New York commercial property insurance policy requires the insured to maintain coverage equal to at least a specified percentage (commonly 80%) of the property's replacement cost. If the property is under-insured, the insurer will only pay a proportionate share of a claim (the co-insurance formula).
Related New York Escrow & Title Questions
- Under New York's recording statutes, a subsequent purchaser who records first will take title free of a prior unrecorded interest IF the subsequent purchaser:
- In New York, a title insurance policy protects against:
- An IOLA (Interest on Lawyer Accounts) account is used in New York to:
- In New York, the New York Real Property Transfer Tax is typically paid by:
- In New York, a 'deed in lieu of foreclosure' is an arrangement where:
- In New York, a 'transfer-on-death' deed (Beneficiary Deed) is:
- In New York, the difference between a 'general lien' and a 'specific lien' is:
- A mortgage satisfaction (discharge) should be recorded because:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →