Everything You Need to Know About Apartment Building Insurance
Apartment building insurance can help keep your building safe. For every property owner, it’s a great feeling knowing that the money will come right to you without 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 insurance for an apartment building.
From a fire in one of your apartment buildings to a visitor slipping and injuring themselves, you need to know you have the coverage you want when the unexpected happens, such as:
- The apartment fire in a Maryland apartment injured 2 and led to 1 death.
- The 40 people were 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, and sometimes all it takes is one unwatched stove or a faulty electrical outlet and your multifamily apartment building can cost you upwards of $100,000 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.
Also Read About: Multifamily Insurance
What Are 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:
- Fire: Regardless of the cause of the fire, if your property gets damaged, it needs to be repaired quickly. Apartment insurance covers the costs of repair.
- Injuries: Tenants, visitors, and employees can trip and injure themselves, which can further lead to a lawsuit.
- Theft and Vandalism: Sometimes, theft and vandalism happen together. Apartment owner insurance covers these costs as well.
- Loss of Income: Closing your units for reconstruction can lead to losing rental income. Luckily, insurance for apartment complexes can help.
Apartment Building Insurance Requirements
While it isn’t a legal requirement to have apartment building insurance, your mortgage provider may require you to have it.
How Much Does Apartment Building Insurance Cost?
On average, the price of apartment building insurance ranges from $67 to $89 per month. The price depends on location, sales, payroll, number of units, and experience.
What Does Apartment Building Insurance Cover?
With so many people to serve, it’s almost impossible to ensure that every hazard is covered. You need to make sure the ground isn’t icy, the floors aren’t wet, and there isn’t anything in the hallways that someone can trip over. Liability coverage can help you should anyone get hurt on your premises.
Apartment crime can range from large crimes such as robberies to petty theft such as employee dishonesty. For example, an employee could forge your signature to steal money from your business account. Apartment building insurance can cover your losses in this case as well.
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 in good condition.
Other Types of Apartment Building Insurance Coverage
General Liability Insurance
This coverage provides protection should someone slip and fall and 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 needs 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 the property, and rental office space.
Read more: Rental Property Insurance
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.
Do you want to know about Builders Risk Insurance?
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.
Loss of Income
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 against any building damage caused by sewer backups.
How to File Claim with Apartment Building Liability Insurance?
Here are a few basic steps to take when claiming with insurance for apartment building owners:
- Report damages or losses to the police
- Safeguard the rest of your belongings
- Contact your insurance company
- Document your losses
- Complete a claims form
Are you still confused about apartment building insurance, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!
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