What is Apartment Building Insurance?
Apartment building insurance is a customized insurance package that protects apartment building owners from property damage and liability risks associated with owning and running the apartments. Owning an apartment building is a significant and rewarding investment, but this venture also comes with risks.
With apartment property insurance, you can protect your investment from damage and get coverage for liability claims if anything happens. No matter what size of your apartment building may be, you will be exposed to several risks that may put you in a tricky financial situation or cause you to lose your income source.
Apartment building insurance works similarly to landlord insurance since these policies are designed for property owners. Both of them also offer similar coverage options since they involve policyholders renting out their building units to tenants.
Why Do I Need Apartment Property Insurance?
Owning a residential property comes with a variety of risks. Besides damage to the property itself, an apartment building owner needs to be protected from liability risks, loss of rental income, and other dangers. As a property owner, it pays to take extra precautions with your buildings to ensure that they are well-maintained.
However, property damage and liability are real risks that apartment building owners can face, no matter how cautious you may be. Whether it be natural disasters or cases like theft, the truth is that these risks are virtually impossible to predict. Thus, with insurance for apartments in MA, you can be proactive and protect yourself from potential lawsuits or financial burdens before anything even happens.
Who Needs Apartment Property Insurance?
Residential building owners need apartment building insurance to get various types of coverage to protect against financial risks. Like how landlords need insurance to protect themselves from the risks of renting out their properties, apartment building owners also need insurance to keep them free from legal or financial harm.
What Protections Does Apartment Complex Insurance Offer?
Apartment building insurance helps protect property owners from two main things: property damage and liability. If perils like fire ever damage your apartment buildings, you can be compensated for the extent of the damage. Likewise, if any accidents or injuries occurred in your property’s premises, you can file a claim to help you pay for legal or medical expenses.
Do Apartment Complex Insurance Policies Include Workers Compensation?
Worker’s compensation is a form of insurance that protects employees from work-related injuries or accidents. It helps pay for medical expenses or rehabilitation costs for workers or supplies lost wages that may result from them being unable to work for some time.
Although insurance for apartment owners focuses more on protecting your property and keeping you free from liability, you may be able to include worker’s compensation in your policy as an additional coverage option. It is not typically included in the standard apartment insurance, but some carriers allow you to add it to your policy.
Contact any one of our independent insurance agents today to learn more about whether this option is available for you. We can connect you with various insurance companies and help you find a suitable policy.
Apartment Building Insurance Coverage Details
Owning an apartment building is a business, and owners need multiple types of commercial insurance policies to get the coverage they need for protection against various financial risks. Further, apartment building owners typically require commercial property coverage and commercial liability coverage. Other optional policies help protect against additional losses.
Whether you own a single apartment building or multiple properties, apartment insurance can provide you with adequate coverage to avoid harm’s way. Property damage can help cover for unforeseen events that may damage your buildings or even cause them to be uninhabitable, disturbing your income flow.
Insurance for apartment building owners also comes with business liability coverage to help you pay for lawsuits or medical fees if you are held liable for incidents within your property. Another common coverage that is highly recommended for apartment owners is business crime insurance, which protects you from wrongdoings, like theft or forgery, committed by your employees or third parties.
Commercial Property Coverage
Commercial property insurance protects against damages to the buildings and structures within your apartment complex. This coverage includes apartment building(s) and other structures like garages, swimming pools, fences, storage space, office buildings, and common areas. Further, coverage extends to additions or construction completed or in-progress, and business personal property used to maintain the building or grounds.
Commercial property insurance is subject to a deductible. A variety of factors determines your deductible amount in your coverage, including premiums and the specific terms detailed in your policy.
Commercial General Liability Insurance
As the owner of an apartment building, you’re responsible (liable) for losses on your property. Commercial liability protects you against bodily injury claims or property loss or damage by third parties within the complex. Indeed, third parties may include other tenants, visitors, repairpersons, delivery persons, or other people that have a valid reason to be on the property.
Some of the most common incidents covered by general commercial liability for apartment building insurance include:
- Slip and fall type injuries
- Water damage
- Property damage
- Lastly, unlawful eviction
Loss of Income Coverage
When rental income is your livelihood, serious property damage can be catastrophic. If your apartment building is damaged so severely that it’s temporarily uninhabitable, you won’t receive rent. Income loss coverage reimburses you for the rent you miss with damage and repairs.
Enhancements And Optional Coverage for Apartment Building Owners
- Equipment Breakdown (Boiler and Machinery Coverage): A policy that covers damage and loss of income due to a breakdown of equipment or mechanical systems.
- Commercial Umbrella Insurance: A policy that provides excess liability coverage that exceeds your existing coverage limits. Commercial umbrella insurance picks up when your liability policy’s limits are exhausted.
- Business Owner’s Policy (BOP): This policy conveniently bundles commercial property, commercial liability, and loss of income coverage into one policy designed for small businesses.
- Professional Liability Coverage (Errors and Omissions Insurance): A policy that protects against claims that you have financially harmed a third party with your negligence or errors.
- Worker’s Compensation Insurance: This policy is designed to protect your employees from work-related illnesses or injuries. Indeed, Massachusetts law requires any business with employees to carry worker’s compensation insurance.
- Lastly, Commercial Auto Insurance: Any vehicle used for a business can be considered a commercial vehicle for apartment building insurance. In fact, this policy covers automobiles owned by your property business like maintenance trucks or shuttle buses.