As a landlord, you likely dedicate a significant amount of time and money to your rental property. Having insurance protects this time and investment should you face loss or legal trouble following an accident or disaster. Here, Muller Insurance, an experienced and independent agency serving New Jersey, New York, Connecticut, Pennsylvania, and other states, teaches you about coverage for landlords owning multi-family home properties.
Landlord Insurance Policies for Multi-Family Homes
If you own a building with multiple rental units, you need coverage that protects you from all possible risks. As with any property, you should have a standard form of landlord insurance to guard the building against structural issues such as pipe bursts, water damage, or fire. Additionally, you can choose between tenant-occupied dwelling insurance and owner-occupied dwelling insurance, depending on whether you also reside on the property or not. Typically, these insurance policies provide the following coverage:
Liability Protection
Since multi-family properties house multiple people, there is an increased likelihood of injuries. This coverage protects you if a tenant or guest gets injured on the premises and claims you are responsible for the accident. Liability protection helps you cover legal costs for lawsuits, medical expenses, or false claims regarding injury on the property.
Dwelling Coverage
Dwelling coverage enables you to prepare for the unexpected. This preventative measure is crucial when owning a multi-family home. If a disaster occurs and ruins your property, you’ll need resources to rebuild quickly. Without dwelling coverage to pay for repairs and rebuilding costs, you may lack the finances to reconstruct the property and get new tenants before suffering a substantial loss. Luckily, many landlord insurance plans include dwelling coverage.
Business Income Coverage
Business income coverage is valuable when rebuilding a damaged property after a disaster event. While dwelling coverage will support the actual repair expenses, business income coverage will fund the loss of revenue from renters during the time of repair. This insurance not only saves you from experiencing extensive profit loss but can protect your livelihood altogether.
Although every landlord insurance policy is unique and includes different coverage, most plans provide the preceding protections for your multi-family property. These policies safeguard you as a landlord and the multiple families residing in your building.
Additional Coverage to Consider
Along with standard landlord insurance, there are additional policies that you can add to your plan. But what isn’t covered in apartment building insurance? Some extra policy options that can be beneficial for your property include:
- Flood insurance: You may want to consider flood coverage, depending on the location of your multi-family home property. Buildings near bodies of water are more likely to experience flooding and should be protected.
- Workers’ compensation insurance: Given the extensive responsibilities of owning a multi-family property, you likely have employees to help you manage the building. Maintenance staff, security, and any additional employees who work for you should have protection under workers’ compensation. This additional insurance will cover you if an employee becomes injured on the job.
- Earthquake or tornado coverage: If your property exists in an area more susceptible to natural disasters such as earthquakes or tornados, you should consider specialty insurance.
Adding insurance for employees or potential natural disasters strengthens your protection as a landlord of a multi-family property. Keep yourself prepared for the unknown by including specific insurance where applicable.
Find an Insurance Agent Who Specializes in Multi-Family Properties
Working with an agent specializing in multi-family homes can give you more assurance since these providers know more about these properties than general insurance companies. They can offer you personalized packages that account for your distinct needs. Agents also can help you navigate the state-specific legal implications for your property and offer advice regarding add-on policies.
If you are a landlord of a multi-family home property and seeking comprehensive and customizable coverage, turn to Muller Insurance for insurance solutions. We are an independent agency and Chubb agent licensed in 24 states, including New Jersey, New York, Connecticut, Pennsylvania, and Nevada. Contact us today to get a quote for your multi-family property.
