Apartment Building Insurance

If you are an apartment building owner, there are some significant coverages to have when you are reviewing the differences between apartment building insurance policies. What is essential to your business is making sure the insurance program is well suited for your needs. Moreover, as an apartment complex owner you have a lot of things to be concerned about such as liability coverage. Any accident or major incident that occurs on your property is your responsibility; ranging from maintenance issues, structural damage to fire, burglary, and personal injury.

The two main categories of insurance for apartment buildings are the building and liability. Apartment Building:

There are various parts one needs to think about when insuring an apartment building.
• Special Form: Includes all direct physical loss subject to exclusions and limitation
• Loss of Earnings: Actual loss that occurred for rent x 12 months
• Mechanical Breakdown: Repair & maintenance of equipment such as air conditioning & heating
• Building Ordinance or Law: Extra coverage to comply with local laws
• Plate Glass: A different coverage (not inclusive)

Selection of deductibles

Liability - Liability concerns are what apartment building owners need to give extreme attention to since court cases on mold and personal injury claims have had a adverse impact on the availability and cost of apartment building insurance.

Building owners need to provide coverage for:
Property Damage & Bodily Injury: single limit, selection of limits

Medical Payments: Pays out initial dollar coverage for injury to guest on premises

The average apartment building owner requests liability limits of $1,000,000. Many insurance companies can adjust this higher or lower based on your needs.

Eligibility for Insurance

Overall, there are several requirements building owners need to have to insure an apartment complex

• 1) The building should be constructed from 1960 or newer.
• 2) The building should be properly maintained.
• 3) Property owner needs to show proof of prior insurance history for the past 5 years.
• 4) Property must have three (3) units up to a specified number by insurer, usually 30 maximum
• 5.) Property value is less than $3,000,000

Apartment Insurance Coverages for Building Owners

• 1. Insurance to Value: Usually, building insurance value is a lot less than its actual replacement value. In the event of a large claim, you will experience a co-payment penalty.
• 2. Rental Income Able to be received for any period up to the true loss sustained for 12 months.
• 3. Boiler/Machinery Coverage Oftentimes, it is not included in the policy, but strongly advised it.
• 4. Umbrella Coverage Additional Liability — extra liability limits can be bought using an umbrella policy.
• 5. Backup of Sewer & Drains Damage caused to your property from sewer backup. In many instances, coverage is excluded
• 6. Restrictive Local Ordinances or Laws
• 7. Flood & Earthquake

Apartment Building Insurance: Suggestions & Recommendations

• 1. Obtain Certificates of Insurance Get certificates for contractors working at your property. (Liability – Workers' Compensation)
• 2. Review Replacement Value Review rental income and the value of your multifamily building every year because it may vary with each year because of material costs, labor and the financial climate.
• 3. Suggested Renters Insurance Suggest to your lessees that they get renters insurance to adequately insure their personal property and risk of personal liability.
• 4. Liability and Workers' Comp. Risk If you have a mixed-use property and have a retail or commercial tenant, don't forget to get the workers' comp. and certificates of liability coverage from them adding you name as additional insured.

Apartment Properties with special insurance risks:

• • Senior Housing
• • Non-Sprinkler Buildings
• • Student Housing
• • During Renovation
• • Section 8
• • Vacant Buildings
• • Condo Conversions
• • Buildings Under Construction

Accessing Apartment Building Insurance Quotes

Apartment insurance quotes should be provided free of any fees, and you can start this on your own. Keep in mind, that with the majority of policies and companies, an owner should anticipate flood insurance to be a individual policy and cost from the basic theft and damage policy that you are going to get.

So for apartment building insurance, look for a policy that offers full protection for the structure and its related property and liability protection. Word is that Farmers, American Family and State Farm which are all direct writers of insurance are very hard to beat for rates.