Apartment Building Owners Insurance

Owning an apartment building can be a prosperous business venture. By owning multiple residences and renting them out to tenants, you can secure a lucrative income stream while also providing essential housing for the members of your community. However, owning and managing an apartment building typically entails significant risk levels, as you’re entrusting your property to the care of others and welcoming many different parties to the premises. These inherent conditions require you to understand and secure appropriate insurance.

What Is Apartment Building Owners Insurance?

More commonly known as landlord insurance and rental property insurance, this type of policy should be considered an essential investment if you own an apartment building. Your coverage will typically consist of a combination of financial protections and features capable of protecting you from various losses and expenses.

What Does My Policy Cover?

Apartment building owners insurance can often consist of several key components, each potentially addressing common potential incidents. As you shop for coverage, ensure that your insurance includes the following:

• Structural damage coverage—While tenants may purchase renters insurance for their belongings, you’ll need coverage for fires, vandalism and other incidents that impact the common areas and exterior of the building.

• Landlord liability coverage—If a renter, guest, passerby or other party is injured or their property is damaged in an incident for which you’re to blame, such as by not maintaining staircases or allowing water damage to occur, this coverage can offset resulting losses.

• Personal property coverage—This coverage can help financially protect property you may leave on-site at the apartment building for tenants to use, such as lawnmowers, snowblowers and other maintenance equipment.

• Loss-of-rent coverage—If a covered incident damages units and makes them temporarily uninhabitable, your insurance could help you recoup the income you would have earned had you been able to rent them out while conducting repairs.

How Much Does Coverage Cost?

Insurance carriers may need to consider a multitude of factors when quoting you a rate for your policy, including the following:

• Structural details (e.g., size, construction materials used and age)

• Location

• Number of units

• Security features (e.g., surveillance cameras and fire suppression systems)

• Claims history

• Coverage details (e.g., endorsements, limits and deductibles)

We’re Here to Help

Contact Roman Empire Insurance Agency Inc. today to learn more about insuring apartment buildings or to compare quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.