What Coverages Does Apartment Complex Insurance Make Available?
Since investors frequently can adjust the coverages contained within their apartment complex insurance policy, the exact coverages that policies provide typically vary. Nonetheless, there are lots of coverages that policies normally make available as optional or standard protections. Some of these more common ones include:
- General Liability Coverage, which might cover lawsuits related to common accidents that occur on company property
- Professional Liability Coverage, which might cover lawsuits related to errant advice that’s given to tenants
- Commercial Umbrella Coverage, which might cover expensive lawsuits with supplemental liability protection
- Commercial Property Coverage, which might cover owned buildings and secondary structure
- Boiler and Machinery Coverage, which might cover permanently installed equipment in buildings
- Commercial Contents Coverage, which might cover moveable equipment in buildings
- Backup and Sewer Drains Coverage, which might cover damage caused by plumbing problems
In addition to these, property owners may also need auto insurance, business interruption insurance and other protections. An experienced insurance agent who’s familiar with these policies and their protections can assist with making informed coverage selections.
Does Apartment Complex Insurance Cover Floods?
While apartment complex policies often make backup and sewer drains coverage available, this coverage is normally limited to water damage that’s caused by a buildings’ plumbing. The coverage usually doesn’t protect against damage caused by floods or other abnormal water patterns.
Property owners who want or are required to carry protection against flood damage generally need to purchase flood coverage separately or add it onto their policy. Depending on where a business is located, this might be done through the National Flood Insurance Program or via the open market. An insurance agent who’s familiar with apartment complex policies can likely also help with finding a flood policy.
Do Apartment Building Policies Cover Earthquakes?
Like floods, earthquakes frequently are also excluded from standard apartment complex policies’ protections. Property owners who want protection against this type of potential damage normally need to buy a separate earthquake policy, which an insurance agent can assist with doing.
How Much Do Apartment Building Policies Cost?
Because every multi-unit building is unique, apartment building policies don’t have one set price. Premiums for these policies typically are influenced by many factors, sometimes including:
- How many units a building has
- How many square feet a building has
- How close a building is to the nearest fire station
- When a building was constructed
- What a building is constructed of
- What protections and limits a property owner has chosen
An independent insurance agent can provide an accurate idea of how much insuring a specific building will cost. They’re able to request quotes from multiple insurance companies and compare each one side-by-side.