If you own an apartment building, there are several factors to consider when choosing your insurance policy. Cost is important, of course, but you want to make sure you get the right types of coverage. Read on to find out what you should know about apartment building insurance.
Types of Insurance for Apartment Building Owners
Just imagine. You’re the proud owner of a brand new apartment complex. Then out of the blue, you’re hit with a tornado, hurricane or some other natural disaster. Extensive remodeling must be done to restore the building back to what it was. business property insurance will cover the costs for this. A business owners policy (BOP) will also cover damages due to storms or fire.
What if you have a sudden electrical surge, and all of your business-related data on your computer is lost? Or what if there’s a fire and your renters’ lease agreements are all destroyed? A business owners policy will cover the costs for replacements, repairs and recovery.
Let’s say one of your tenants falls by the pool, fractures a leg and incurs hospital expenses. Or a tenant with asthma has to go to the hospital because of the fumes from paint that’s been freshly added to spruce up common areas around the building. These unforeseen occurrences can add up to a real mess unless you have business liability coverage. This will cover the costs of potential lawsuits and other issues.
Last but not least, what if one of your tenants is selling drugs out of his apartment? Or he mugs another tenant on your property? Or someone breaks in and steals property from one of your tenants? The stress of this can be relieved if you have business crime coverage. This will protect you from the actions of others living on your property that you can’t control.
“All Risk” Versus “Named-Peril” Policies
Named-peril is exactly as it sounds. It only covers accidents that are specifically named in your policy. So that means that if you didn’t think about a sinkhole, and yet a freak accident happens where part of your building falls into a sinkhole, damage won’t be covered because it wasn’t named in your policy. All-risk, on the other hand, will cover you for a broader range of things, not only what is specifically named in the policy. Tornadoes, hurricanes, gas explosions, fires, floods, earthquakes and anything else—these will be covered.
3 Factors to Remember about Apartment Building Insurance
Remember, when choosing the right type of coverage, there are three things more important than just the cost:
- the right type of insurance
- the right amount of coverage
- the right insurance broker
Zawada Insurance Agency is your all-in-one resource for helping you find not only the coverage that best suits your needs, but we’ll match you to the right broker. 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 and multi-family home ownership insurance, please contact Zawada Insurance Agency today. Zawada Insurance Agency, Inc. located in Worcester, Massachusetts, serving central Massachusetts and beyond.