There are many variations of multi-family dwellings, each with their own nuances when it comes to liability. Before you buy a multi-family residential property, make sure you know the differences so you can find the best insurance coverage suitable for your situation. Muller Insurance features several insurance policies that can fit your needs, so it’s easy to protect your investment and guard against financial loss.

Tenant-Occupied Dwellings

In a tenant-occupied dwelling, the landlord owns the property, but does not live in it themselves. As the landlord, you will be responsible for:

  • Loss and damage to the building as a whole: Damage to the building’s structure can come in many forms, from hailstorms to vandalism. You will be responsible to make repairs and keep the building in good condition.
  • Personal Liability: If an accident occurs on your property that causes injury, you could be responsible.
  • Loss of Rent: Rent loss insurance, or loss of use coverage, reimburses a landlord for lost rent, but only if the lost rent is associated with a covered claim. However, if your tenants skip town or simply refuse to pay rent, rent loss won’t reimburse you. Rent guarantee insurance is a supplemental insurance option that can fill the gap.
  • Some Unit Contents: You will be responsible to make repairs on or replace damaged items within individual units that you own and provide to occupants. This could include appliances, light fixtures or included furnishings.

The tenant-occupied dwelling policy offered by Muller Insurance covers these situations with the content inside the home being an optional add-on, for properties from one to four units.

Owner-Occupied Dwellings

In this type of dwelling, the owner of the property occupies one of the units, rather than renting them all out to other families. Like tenant-occupied dwellings, you will be responsible for personal liability and damage to the building caused by smoke, fire, vandalism, hail, wind, theft and more. Muller Insurance owner-occupied dwelling insurance will provide coverage for these items. While you are not responsible for any of your renters’ personal belongings, you will be required to maintain upkeep of common areas like the hallways, entrances and elevators. You will also be responsible for certain hazards, like floods and earthquakes, which can be covered under an additional plan. It’s also important to keep in mind that you will need coverage for your own personal belongings.

Apartment Buildings

As the owner of an apartment building with multiple individual units, you are responsible for the building itself, all common areas and any items you own and provide for tenant use. Some issues that fall under your liability include:

  • Fire and storm damage
  • Sewer and drain backup
  • Theft and vandalism
  • Building code issues
  • Loss of rent

If any of these problems arise, you will be held responsible to pay for whatever is needed to bring the apartment building back to its normal condition. Check out our apartment building insurance plan to get covered.

Co-Op Insurance

As part of a co-op policy, you will be joining with other tenants of a property to reduce personal risk and extend coverage. Since personal belongings are not typically covered in multi-family dwellings, you are responsible for anything inside your unit. If something is damaged or stolen, you can submit a claim through the group policy. You are also responsible for any injuries that happen within your space, so our co-op insurance plan covers personal liability as well. Before working with your fellow tenants to get co-op insurance, check your building’s policy so you know what is already covered and what you are still responsible for. The co-op itself should be covered under a separate policy for outdoor spaces, common areas and any other community resources.

Condo Insurance

Condo insurance is very similar to co-op insurance in that you are responsible for damage or theft of your belongings and are personally liable for accidents inside your unit. However, this policy will only be for your individual use, and not grouped together with other people living in the property. Muller Insurance provides condo insurance plans that can cater to your situation based on what your building’s insurance plan already covers. And just like a co-op, common areas, elevators and the like will be covered by a separate policy.

Get Covered

Whether you are the owner of a large multi-family dwelling or a condo, you will be open to certain risks to your property. Make sure you have the coverage that best fits your situation with help from Muller Insurance in Hoboken, New Jersey. For more information, contact us or request a free quote today.

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