The New Fit: Insurance for Apartment Building Owners

TLTR:  This article describes all the possible policies for owners looking for insurance for their apartment building.  Being a landlord can be a profitable business, but there are numerous risks involved and it can also be costly. Therefore, apartment building owners would be well-advised to take strict precautions against liabilities through appropriate insurance coverage.

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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
  • Trespassing
  • Employee or tenant allegations and lawsuits

Luckily, a few simple policies will secure you against these risks.

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How to Protect Yourself from Liability Claims

The biggest lawsuit you may face as an apartment building owner is if a tenant claims injuries or dangerous conditions due to building/landlord negligence. Meanwhile, you can avoid such situations if you…
  • 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
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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. 

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More on Policies for Apartment Building Owners

  • 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 InsuranceCommercial 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.

Conclusion

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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