How Much Insurance You Need on an Apartment Building You Own
Keeping your apartment building up and running is no small task. If you’re ready to take on that responsibility, making sure your building is covered by insurance is a key step to protecting your investment from a variety of risks. From the average policy to helpful add-ons, there are a variety of scenarios to consider. Here, Muller Insurance will discuss what apartment building insurance covers and how much you might need for your building.
Landlord Policies
When it comes to insurance for your entire apartment complex, a policy helps protect you. Landlord insurance is similar to homeowner’s insurance, but also protects against the potential risks apartment owners commonly face. Part of the policy covers the building itself, while the other part provides protection against legal claims against the property. Some of the things your insurance might cover include:
- Fire and storm damage
- Vandalism
- Building code issues
- Loss of rental income
- Sewer issues by endorsement
- Liability
While a landlord policy can cover many things, it typically won’t cover damage to your tenant’s personal property. It’s a good idea to urge them to purchase renters’ insurance for themselves. To help make things simple for everyone, some landlords require proof of a renter’s policy upon signing the lease.
Consider Additional Risks
As you’ll find while searching online and discussing options with your agent, the cost of protection will vary by state, individual need, and location. For example, preparing for the unexpected means finding an insurance policy that accounts for the risks associated with the common conditions of the area, such as tornados and hurricanes. Flood coverage is also available in a separate policy, and earthquakes may be covered by endorsement if available.
Adequate coverage in high-risk zones is an important part of protecting your investment. You may also want a separate umbrella policy to keep you covered where your current policy falls short. With limits to the dollar amounts and legal liabilities the average policy provides, umbrella insurance can help keep you covered beyond those maximums.
Building-Specific Coverage
Another piece of the puzzle is taking into account the type of rental property you own. Coverage is available for residential apartment buildings and mixed-use apartment buildings of all sizes and capacities. Residential coverage is for buildings meant for residential use only, while mixed-use building coverage is for buildings with a combination of residential and retail units. If your building includes retail units, policy coverage can take into account the unique circumstances of the property.
For additional protection, it’s also a good idea to install safety equipment, such as security systems, motion sensors, and other features. These safety measures may help keep premium costs down, protect against liability, and help you save more in the long run.
Connect with a Muller Insurance Agent
The average cost of a landlord’s policy is a small price to pay for years of peace of mind. Protecting your investment starts with having the right coverage for your distinct needs. At Muller Insurance, we can help you find an affordable insurance bundle that’s just right for your apartment building. We’re licensed in New Jersey, New York, Connecticut, Pennsylvania, Nevada, and other states — reach out today for a free quote.
