Insurance Considerations for Apartment Buildings

Owning an apartment building comes with a unique set of responsibilities and risks. Ensuring you have the right insurance coverage is crucial to financially protect your investment and manage potential liabilities.

What Insurance Do Apartment Buildings Need?

Here are some key considerations for apartment building insurance:

• Property insurance—This coverage is the foundation of your insurance portfolio. It can help financially protect the physical structure of your building against costs incurred due to damage from covered perils, such as fire, vandalism and certain weather events. Make sure your policy covers all structures on the premises, including garages, storage buildings and common areas.

• Liability insurance—As a landlord, you are responsible for the safety of your tenants and visitors. Liability insurance can help financially protect you if someone is injured on your property and decides to sue you. This coverage can also help pay for related legal fees and third-party medical expenses.

• Business income insurance—Also known as business interruption insurance, this type of policy is essential if your building becomes uninhabitable due to damage from covered perils. It can help replace lost rental income, ensuring you can continue to meet financial obligations even when your property is not generating revenue.

• Flood and earthquake insurance—Standard property insurance policies typically do not cover costs incurred from flood or earthquake damage. If your building is in an area prone to these risks, consider purchasing additional coverage to protect against these specific perils.

• Umbrella insurance—This type of policy can offer extra liability coverage beyond the limits of your standard property and liability coverage. It is particularly beneficial for apartment building owners like you, as it can provide additional financial protection against large-scale claims and lawsuits.

Learn More

Contact AIC Insurance Agency to discuss your insurance portfolio today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.