What Do You Need to Know before Getting Apartment Building Insurance?
Apartment building insurance can help keep your building safe. As a land owner. It’s a great feeling knowing that the money will come right to you without you having to do too much work. You wouldn’t want all that time and effort to go to waste, that’s why you need to make sure that you have the best landlord insurance policy around.
From a fire in one of your apartment buildings to a visitor slipping and injuring herself, you need to know you have the coverage you want when the unexpected happens. such as:
Like the apartment fire in a Maryland apartment that injured 2 and led to 1 death.
Or the 40 people left homeless by an apartment fire in eastern Pennsylvania.
Or the cooking oil apartment fire in Sussex Borough, New jersey that damaged several apartments.
Anything can happen, all it takes is one unwatched stove or a faulty electrical outlet and your multifamily apartment building can cost you upwards of hundred thousand to fix up, not to mention the cost it will take to house the people displaced by the fire. At East insurance Group we have property insurance experts who work tirelessly to get you the best coverage possible, so if the worst happens, you know you’re still covered.
What Apartment Building Insurance Risks?
Building owners take pride in the maintenance and appearance of your apartment building, keeping it clean and safe for your tenants. Having apartment building insurance is important and you need to make sure your exposures are covered. Typical exposures are:
Much like those of a private home but multiplied by the amount of families who live their. You need coverage that will help you should your building be damaged or if your office contents, such as tenant leases and paperwork, get destroyed or stolen. Business Property insurance helps you protect the building you and your tenants rely on every day.
Apartment Building Insurance Rates
With so many people to serve it’s almost impossible to make sure that every hazard is covered for. You need to make sure the ground isn’t icy, the floors aren’t wet and there aren’t anything in the hallways that someone can trip over. Liability coverage can help you should anyone get hurt on your premises.
This can be range from large crimes such as robberies to petty theft such as employee dishonesty. While you need to do what you can to avoid any of these issues from ever happening, business crime insurance includes coverage for things like vandalism and employee dishonesty
Apartment Building Ordinance
Building Ordinance Coverage covers the increased cost to comply with a building ordinance such as smoke and fire detection, fire extinguishers, and carbon monoxide detectors in the apartment units. As well as making sure that the parking lots, sidewalks, and any parking structures are well lit, and good condition.
What Coverage Are Typically Included in an Apartment Building Policy?
General Liability Insurance
This coverage provides protection should someone slip and fall and they file a liability suit on you. General liability covers losses to your rental families if their property is damaged when your employees enter the premises to make repairs or perform inspections.
This coverage protects you should your apartment suffer serious damage and need repairs. If a major storm or fire destroys your apartment, you want to be confident that your apartment can recover with as little disruption as possible. This can include losses to the entire building, other owned structures, any equipment on site used to maintain property and rental office space. insurance for apartment buildings
Commercial Umbrella Insurance
This adds extra protection should a claim reach its maximum. This is especially useful in higher risk areas that are prone to risks.
Workers Compensation Insurance
This coverage will protect you should any full-time employees managing your apartment suffer any work-related injuries. In addition, this will also cover uninsured or underinsured independent contractors or maintenance crews on site that may not be covered by your general liability coverage on your apartment building insurance policy.
This can protect against the effects of catastrophic property loss, such as steam boiler explosion or an expensive breakdown of machinery and equipment.
This coverage protects the building and structures as well as garages, storage buildings, swimming pools, fences, retaining walls, as well as additions under construction and other apartment structures. We recommend insuring to Value since often, building insurance value is much lower than its true replacement value.
Loss of Income
This will cover you in cases where the apartment has been damaged and currently not making you any money, this will help pay out your lost income, the actual amount varies by state.
Ordinance and Law
Covers the loss of value and increased cost due to the enforcement of municipal laws or ordinances regulating the construction or repair of damaged buildings caused by an insured loss.
Backup of Sewer & Drains
This specialized coverage protects any building damage caused by sewer backups.
How to Reduce the Cost of Apartment Insurance?
The cost of an apartment building insurance varies a lot based on the location, value, and size of the building. There are a lot of ways to reduce the cost of home insurance, such as learning or taking advantage of discounts. Living in an apartment, here are some things you can consider to save.
If your building has security, how tight and secure it is? Are stairwells gated? Can only guests gain access to the lobby or lifts with a key or card, or can anyone wander the complex at any time? If your apartment is secure, you have smaller risk of burglary or theft, and the more likely you will get more affordable premiums.
If doors lock automatically. Another simple measure that can affect security of the building is when the door locks automatically when shut. In this way, it will be more difficult for the strangers to get in.
If your unit is on a higher floor. The higher up your apartment is, the less likely you will be broken into. This situation can help lower your apartment contents insurance premium.
If you don’t have a balcony. Commonly, thieves and burglars gain access to apartments due to unlocked balcony doors. So without a balcony, it will be cheaper to insure.
What Can You Do to Protect Your Apartment?
Apart from building insurance will only cover accidents and the unpredicted. It cannot cover incidents that are caused by your negligence. Here are tips that can help prevent loss and damage to your apartment.
Regular maintenance will be able to help you find areas of wear and tear before they result in other problems.
Security guards in security doors and surveillance cameras can help prevent thefts.
Hiring professional handymen with technical job experiences can save you stress and time.
Apartment insurance best works for anyone who wants to protect their items in their homes, but not the building. You can add coverage for fixtures and fittings, so your kitchen countertops, kitchen cabinets, solar power systems, and air conditioning units are secured and protected. This type of insurance is usually available only if there is body corporate or strata insurance.
What is Body Corporate Insurance?
The body corporate is sometimes referred to as the owner’s corporation, which is responsible for maintaining and managing the common areas of the apartment. As the owner of the apartment, you become a member of the body corporate and you take part in the decision-making process to do with all the stiff concerning common areas.
All lot owners in the strata scheme and being part of the body corporate have important roles to note:
The body corporate, which is sometimes referred to as the owners’ corporation, is responsible for managing and maintaining the common areas of an apartment block. As the owner of an apartment or unit in the property, you become a member of the body corporate and can have a say in the decision-making process to do with all matters concerning common areas.
The body corporate is made up of all lot owners in the strata scheme and performs the following important roles:
- Ensuring that adequate insurance cover is in place for all the buildings, including cover against physical loss or damage to the building as well as public liability cover for common areas
- Organizing the repair and maintenance of the common property, for example, car parks, security gates and public lighting
- Establishing and enforcing by-laws that set out what lot owners can and can’t do, for example own a pet
- Deciding how much each lot owner must pay so that the body corporate can perform all necessary tasks
- Preparing financial statements and maintaining financial records
The body corporate may vote to get a professional strata management team to manage the building on its behalf, or it may decide to take care of all management tasks itself.
Home insurance generally covers the building, while contents insurance covers your belongings. Because apartment owners are required to get strata insurance, you don’t need home insurance. However, you may want to buy contents insurance and add on cover for fixtures and fittings.
What if I want to rent my apartment?
You’ll need to consider buying landlord insurance. Landlord insurance covers all your fixtures and fittings in the apartment, which includes things like window blinds, carpets and light fittings.
These policies also include financial protection against a number of other risks, such as if a tenant defaults on their rental payments or if a public liability claim is made against you. Some landlord insurance policies will even cover your loss of rent if the apartment suffers contents damage and becomes uninhabitable for a period of time.
If you need cover for an apartment you want to rent out as an investment property, check out our guide to landlord insurance for more details on how this type of insurance works.
Insurance for Apartment Complex Owners
We have programs for apartment building owners that specialize in older properties and those that target newer apartment complexes. Habitational risks are right in our wheelhouse. We are constantly watching and adjusting the business insurance carriers we work with to make sure our building owners get what we as an insurance broker bring to the table: the best combination of price and protection!
- Commercial Property Damage
- Commercial General Liability
- Business Owners Policy (Bop)
- Surety Bond
- Loss of Business Income
- Commercial Auto Insurance
- Workers Compensation
- Business Owners Policy (Bop)
A business owners policy (BOP) includes comprehensive general liability in addition to protecting your physical and intangible business assets.
A BOP will cover the cost of replacing the roof of your apartment building if it is damaged in a storm (if you have a building coverage). If an electrical surge destroys the appliances inside your apartment units, BOP will cover the cost of replacing those appliances that belog to you.
Business owners insurance also protects you from the loss of valuable papers such as your apartment lease agreements. If you have critical business data in electronic form and it is ruined due to a computer virus, BOP will cover the cost of repairing, recovering and replacement as needed.
Many apartment building owners use automobiles as part of their day-to-day business activities. Whether your apartment provides a shuttle service to its residences, or your employees must drive to pick up equipment for the complex, commercial auto insurance covers your vehicles in the event there is an auto accident. Your business auto insurance can cover medical expenses and care for your drivers and other people who are involved in the accident. It can also cover incidental losses from theft or vandalism if you choose.
By law, you are required to carry workers comp insurance for all of the employees in your apartment building. Workers comp protects the employees from financial hardship due to accidents on the job and it protects your company from costly lawsuits. Workers comp will pay for medical care and related expenses if your employees are injured while working. If they are made ill from work-specific conditions, workers comp insurance will cover those expenses as well.
A surety bond guarantees that you will provide a service. As an apartment building owner, you may utilize surety bonds to guarantee that your rental customers receive a certain level of maintenance services. If you enter into contracts with your customers, such as when you require them to sign a lease, a surety bond can act as a guarantee to them that you will uphold your end of the agreement.
Visit our offices today to discuss additional customizations to small business insurance policies that your apartment building needs.
Apartment buildings are a unique business with many different business advantages and risks. As the owner of an apartment building, you are responsible for several families and their belongings. This responsibility is in addition to your general business responsibilities.
Small business insurance coverage is a way to help ease your burdens and protect your business assets. It helps by protecting your business and the families under your roof from harm, or losses caused when disaster strikes.
Owning an apartment building is a big investment. Insuring your investment is not as easy as taking the lowest quote! In many cases this is your retirement money… at Balsiger Insurance we have aligned our agency with top carriers to make sure you get the best coverage with the best pricing!
GET A QUOTE AND GET COVERAGE TODAY
Our Apartment Building Insurance agents are ready to help you out.