Apartment Building Owners: Insurance Must-Haves

Apartment Building Owners: Insurance Must-Haves

If you own an apartment building, the worst thing you can do is choose an insurance policy simply because it’s the cheapest and you’re trying to save money.

The first three things you MUST consider are:

  • the right type of insurance
  • the right amount of coverage
  • the right insurance broker

Getting these right is critical to having peace of mind should the unexpected occur.

4 Types of Customized Coverage

When you look at the types of coverage available to property owners, it falls into four categories:

Business Property – protects you from damage to the building caused by storms and natural disasters.

Business Liability – protects you from issues relating to accidents, injuries and things that could result in potential lawsuits.

Business Crime – protects you in case of theft, vandalism or employee wrongdoing.

Business Ordinance – covers costs for remodels and work needed to be done after a natural disaster, such as a tornado or hurricane.

Get “all risk” over “named-peril” policies.

It’s recommended that you get a broad policy, or all-risk insurance, rather than “named-peril” policies. This is because you can’t predict what may happen. If you have “named-peril,” your policy will only cover those disasters that are specifically named in the document. If you have “all-risk,” you can rest assured that you’ll be covered for all kinds of things—tornadoes, hurricanes, explosions, sinkholes, fires, floods, earthquakes and things not necessarily mentioned in your contract.

Coverages to consider.

In this blog, we’ll be talking in more detail about various types of coverage. For the apartment building owner, you’ll want to have general liability insurance. This will protect you in case someone falls on your property and suffers bodily injury—you won’t be held liable for accidents like this. This is a common scenario—someone slips and falls around the pool area of your apartment complex. You could be considered negligent for having a slippery patio area. That’s why you want insurance to protect yourself should something happen that’s beyond your control.

If you accept a tenant in your building whom you later find out is selling drugs, you’ll want to have property manager professional liability insurance. This will protect you from lawsuits should your tenant screening process not catch something in the applicant’s history. It will also defend you from allegations of Fair Housing Discrimination Violations should you need to evict a tenant. In essence, this protection covers a variety of situations that could also be beyond your control.

Enhanced Apartment Building Coverage

As an apartment complex owner or multi-family housing manager, you’ll want to consider coverages that can protect you from those intangibles that could happen—theft, flooding, sewer back-up, outdoor landscaping, debris removal, pollutant clean-up and removal, and more.

Zawada Insurance Agency is your all-in-one resource for helping you find the coverage that best suits your needs. We’re a family-owned and operated independent insurance agency, working to get you the most comprehensive coverage at a competitive price.

For more information about apartment building, multi-family and 3-family insurance, please contact Zawada Insurance Agency today.

Zawada Insurance Agency, Inc. located in Worcester, Massachusetts, serving central Massachusetts and beyond.