Purchasing an apartment building is a large investment. Your investment must be fully protected. The good news is that apartment building insurance is an easy and cost-effective way to protect your property from a vast amount of risk. In essence, apartment building insurance is just like landlord insurance, however it’s usually adjusted in order to meet the increased risk that is inherent with managing larger multi-unit buildings. That’s why the vast majority of apartment building insurance policies have high limits and multiple coverages.
It provides property owners with the option to adjust the policy limits and coverage in order to be able to meet their exact business-related requirements. So, who exactly should have apartment building insurance coverage? Basically, any entity that owns multiple unit residential investment property in the Commonwealth of Massachusetts should make sure that they have apartment building insurance coverage. In fact, many building owners are required by the commercial mortgage lender to carry particular amounts of coverage. Even if the apartment building insurance isn’t required, it’s highly advised.
The bottom line is that even one incident can cause a negative impact on the owner’s finances when they are not protected by an apartment building insurance policy. So, what does the policy typically cover? Based on the fact that property owners can basically adjust their coverage based on their business and personal needs whenever they want, the exact coverages per policy tend to vary. However, there are some standard coverages that should be included in every policy. For example, General Liability covers lawsuits that are based on accidents that happen at your property.
Professional Liability is another standard coverage that covers lawsuits that are based on errant advice or information that is provided to tenants. Commercial Umbrella covers expensive lawsuits with additional or supplemental liability protection for the property owner. Commercial Property covers buildings and secondary structures that you own. Boiler and Machinery policies cover equipment that’s permanently installed in the building such as the boiler. Commercial Contents covers equipment in the building that is moveable.
Last but certainly not least is Backup and Sewer Drains, which covers the costs of any damages that are caused by plumbing related issues. Apartment building owners may also need additional coverages such as auto insurance, business interruption insurance, and others. You should sit down with an insurance agent who is experienced in providing apartment building insurance policies to discuss the exact details,
If you own or manage an apartment building in the Commonwealth of Massachusetts then you need to ensure that you have the proper insurance coverage in place. We can help you get the best deal on all of your personal and or business insurance needs. Please consult with a professional insurance agent that can answer your questions about all insurance related topics. It is important to fully understand exactly what you are buying when it comes to insurance policies.
If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business-related insurance needs now and in the future.