Apartment Building Owner Insurance

Apartment Buildings

Insurance for apartment buildings is broken in to two main categories the building and liability.

Apartment Building: There are several areas one must consider when insuring an apartment building.
Special Form: Includes all direct physical loss subject to exclusions and limitation
Loss of Earnings: Actual loss sustained for 12 months rent
Mechanical Breakdown: Repair & maintenance of air conditioning & heating equipment
Plate Glass: Separate coverage
Building Ordinance or Law: Additional coverage for compliance with local law Choice of deductibles
Liability Today apartment building owners must pay special attention to liability concerns. Litigation on personal injury and mold claims have had a tremendous impact on the cost and availability of insurance for apartment buildings. Property owners must provide coverage for: Bodily Injury & Property Damage:  Single  limit, choice of limits Medical Payments: Pays first dollar coverage for injury to guest on premises
Eligibility In general there are a few requirements property owners must meet when insuring an apartment building. 1) The unit must be built 1960 or newer. 2) The unit must be well maintained. 3) Property owner must document prior insurance history (5 years) 4) Property must contain three (3) units to thirty (30) units. 5) Property value must not exceed $3,000,000. 6) Property may be 1 or 2 story.

Apartments Coverages
Here are some of the coverage options that are available to you to help you with your insurance needs:

Property and Inland Marine
Buildings at Extended Replacement Costs or Actual Cash Values
Separate limit for Specified Property (Pools, Fences, etc.)
Automatic Increase in Building Amount (inflation guard)
Contents at Replacement Costs or Actual Cash Values
Loss of rental income and extra expense on an actual loss sustained basis for 12 months or other extended period.
Loss in value of undamaged building portion, demolition or increased construction cost to meet ordinance or law requirement
Comprehensive equipment breakdown coverage
Coverage extension to newly acquired buildings
Fire department service charge and extinguisher recharge cost
Outdoor signs
Debris removal or clean up cost
Pollutant clean up cost
Back up of sewers or drains or appliances
Accounts Receivables and Valuable Papers coverage
Computer equipment including Media & Records
Earthquake or earthquake sprinkler leakage



What do I need to know about Apartment Building Insurance?

If you are an apartment building owner, there are many important coverages to have when you are comparing apartment building insurance plans. Having an insurance program custom tailored to your unique needs is essential to your business. We work for you, not the insurance company. As an independent agency, we help you search the market and compare benefits and prices to get you the most comprehensive pricing and coverages. By working for you as our clients, we can help you find the necessary insurance coverage and protection while minimizing your costs and expenses.

Some important coverages to consider when insuring your apartment building is to make sure that you have enough coverage to replace your building in the event of a loss. Building costs and materials have steadily risen over the years - you want to make sure that you can rebuild your important asset. Once you determine the amount of insurance coverage you need, there are many ways to save on your apartment building insurance and keep your premiums lower. Some ways to reduce your insurance premium include having a higher deductible, being loss free for a period of years, and by owning a newer apartment building.

The apartment building owner must take into consideration liability insurance protection.

Insurance to Value: It is important to insure your building to the replacement value.

It is important to recommend that your tenants have their own renters insurance policy to properly cover their personal property and personal liability exposures.


Contact us for a Free Apartment Building Insurance Quote