As anyone can probably guess, owning a residential rental property can be both personally and financially rewarding. But it can also be just as risky as drinking expired milk, especially if you’re new to the game. And without the right apartment building owner’s insurance, landlords can face serious financial harm if something goes wrong.
But that’s why we’re here. To help walk you through the coverages you need to properly protect yourself. And when you’re ready, our independent insurance agents can help take it from there. They’ll shop multiple companies, bring you more options than anyone else, and make sure you get the price you’re looking for. So, let’s get started.
The primary concern for apartment building owners is protection of the property from catastrophic events. Property insurance alone is complicated; your coverage and how much it costs vary depending on the building’s location, type of construction, and a number of other factors.
Your apartment complex insurance also needs to protect you from liability claims and other, less obvious things, like lost income(rent) after a covered loss. You need an independent insurance agent to help you determine the coverage you need to make sure you are fully protected.
Just a few of the risks apartment building owners have to deal with include:
These risks can all be addressed with just a few insurance policies tailored to your needs.
To make it in the landlording world, apartment building owners need several business insurance policies to protect them from all-too-common property and liability risks. The most common coverages are commercial property ad commercial liability, however, your unique situation may benefit from a few other types.
Commercial property coverage protects against the loss of your apartment building or buildings within a complex, as well as other structures on the property, like: garages, office space, common areas, fences, swimming pools, and storage buildings. Your apartment building property insurance should also cover any additions or improvements that are completed or under construction, as well as any business personal property that is kept on the premises and used to maintain or service the building and grounds. The amount of coverage you need and the cost of coverage depend on a variety of factors including the following:
Remember that your property insurance coverage is subject to a deductible if you have to file a claim. If you own a large complex with multiple buildings, does your deductible apply per building, or per occurrence?
Imagine that several buildings in your complex fall victim to hail damage and need roof repairs. A per-building deductible requires that you pay the deductible for each building that needs repairs before your coverage pays for the damage. A per-occurrence deductible, on the other hand, requires you to pay one deductible regardless of the number of buildings that sustain damage.
This two options are important for you to understand to help you choose wisely when purchasing your coverage. Your agent can help walk you through any questions you have on the pros and cons to both, too, so don’t be scared you’ll make the wrong call.
Apartment building owners also need loss of income coverage. This important coverage reimburses you for lost business income(rent) if the property is damaged by a covered loss (storm, fire) and results in a loss of income or suspension of operations while repairs are made to the property. And that’s huge, because missing out on some, or all, of that income can put a significant dent in your operation.
Commercial General Liability Insurance, or Landlord Insurance, protects against claims of actual or alleged property damage or bodily injury by third parties (tenants, visitors, repair persons, delivery persons, etc.). This is the type of coverage you need to protect you from lawsuits if a tenant or visitor is injured at the property’s pool or gym, or suffers a minor event like a slip, trip, or fall on the premises.
Talk to an independent insurance agent about the following additional types of apartment building insurance that you may need.
Apartment building owners are often the subject of liability claims and lawsuits. Even if a claim is invalid, one lawsuit can cost you a pretty penny just to defend yourself.
Here’s a few tips to help you minimize your risk of lawsuits from tenants and other visitors to your apartment building:
While you should have general liability coverage to protect yourself from lawsuits, not every type of claim is covered. Be sure to understand what is covered and what is not covered by talking thoroughly and truthfully with your independent insurance agent.
Apartment buildings present a very unique set of risks that owners must insure against. With the help of an experienced Trusted Choice independent insurance agent, you can find the right mix of property and liability coverage to protect your assets, even in the worst of times.
Independent insurance agents are kind of like the Google of insurance quotes. You tell them what you’re looking for, and they bring in the results. And since they aren’t tied down to one carrier, they’re free to shop around and bring multiple policy options to the table.
And it gets better, you don’t have to review the policies alone. They’ll walk you through everything you need to know about finding the right coverage, and price, for you. But it doesn’t end with your signature. Along the way, if something bad ever happens, they’ll handle the entire claim process for you and deal with the carrier, so you can focus on your real estate empire. How sweet is that?