The New Fit: Insurance for Apartment Building Owners
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Risks Faced by Apartment Building Owners
While it’s a given that insurance for apartment buildings protects you from liability claims, there are hidden risks involved. For instance:
- Damages due to natural catastrophes
- Theft and vandalism
- Employee or tenant allegations and lawsuits
Luckily, a few simple policies will secure you against these risks.
How to Protect Yourself from Liability Claims
- Secure your building
- Are respectful of gender, religion, race and sexual orientation
- Respect tenants’ privacy
- Are cordial and communicative with tenants
- Do not overcharge rent or conduct business based on false information
- Ensure there are no zoning violations
Factors to Consider in Your Policy Package
Insurance for apartment buildings should also cover other areas of improvement and unforeseeable risks. Here are some factors to consider before choosing a policy bundle…
- Age of your building
- Locality of your building (land issues, climate, history)
- Facilities such a gym, pool etc. available on the property
- Construction type (material, building type)
Insurance for Apartment Buildings: Cost-Saving
Policies are costly if you buy them individually. For example, Business news estimates that general liability insurance alone can range from $300-$600. Similarly, a business-property policy premium can run you $700. Avoid unnecessary costs, bundle your coverage through options like the business owner’s policy. Lastly, to save additional costs, Forbes recommends asking your agent for options to pay your policy annually using a 0% purchase credit card.
More on Policies for Apartment Building Owners
- Business Owners Policy: A business owner’s policy is a bundled policy which can be tailored to fit your needs as an apartment building owner. For example, this policy includes commercial property insurance, general liability insurance, business interruption insurance, and commercial auto insurance.
- Loss of Income Coverage: This is specific insurance for apartment buildings that is not included in a business owner’s policy bundle. This policy reimburses you for your rent (which is your income) in case of natural calamities and fires. Remember to ask your agent about a loss of income policy.
- Commercial Property Insurance: Commercial property insurance protects you against loss due to damages. It also provides coverage for various structures within the property. This policy will repair numerous assets in your commercial property and is one of the key aspects of an apartment building policy.
When speaking to an agent, present your research and ask for advice on things you may have missed. For example, it’s important to assess the nature of your deductible in case of a claim. You must remember to ask: Does my deductible apply per building, or per incident?
Owning an apartment building comes with tremendous responsibilities. Insurance for apartment buildings provides the best coverage when you add the appropriate policy bundles.
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