For business owners, apartment buildings blend commercial and residential use. The good news is that finding and purchasing necessary insurance coverage is easy.
While insuring property within rented units always falls on the tenants, landlords and apartment building owners must account for the building itself, any damages, and employees on the premises. Tenants pay their rent, so owners are responsible for bringing them the quality of housing they were promised.
Like any other business, different types of commercial insurance coverage make up an apartment building insurance policy. The need for affordable apartment building insurance has never been greater in this business because apartment buildings often run on a strict budget and income.
Insurance Navy is here to tailor the premiums to any apartment budget and make the sometimes complex world of insurance more accessible to anyone.
Enter your ZIP code below to view quotes for the Cheapest Business Insurance Rates.
Apartment buildings should have the best insurance coverage
Business or commercial insurance is a must-have for apartment buildings. After all, the customers always stay home since it is their home. While that may be mainly liability coverage, there are still several damages and risks that apartment building owners should be aware of.
Here is why it’s so essential for apartment buildings to carry the proper coverage:
- Damage to the apartment building caused by smoke or a fire
- Damage to the building resulting from stormy weather like wind or lightning
- Criminal damage as a result of break-ins and vandalism of the property
- Property damage to the apartment due to a car crash or even a plane that went down
- An employee or attendant being injured on the property while on the job or during a shift
- A breach or cyber attack on the apartment’s digital records or computer system
- Building property damage caused by explosions
- Building and property damage caused by civil disturbances like riots
- Tenants and even squatters getting injured and suing the property
These are just some concerns to think of when customizing your policy.
Enter your ZIP code below to view quotes for the Cheapest Business Insurance Rates.
Essential Apartment building insurance
Everything that happens outside of the rented spaces that are considered the tenants' property is the responsibility of the apartment building owner based on the several hazards and damages previously mentioned.
Some are more likely and common than others and require the foremost insurance coverage. Apartment building owners often include the following insurance coverage in their policies:
General liability insurance
General liability insurance is synonymous with business insurance. Tenants and visitors can be injured outside their rooms, and the ensuing lawsuits can do more than set back building management. This can be due to the usual slip-and-fall injuries or something more significant like an elevator causing injuries or worse.
More coverage from general liability also includes any lost wages or income if the injured tenant or visitor has to miss work while recovering. Medical bills and treatment are also covered.
In an apartment building, this can include injuries that occur in facilities managed by the building, like a gym or common area. Damages stemming from something that is the building’s responsibility to manage can result in a negligence lawsuit, which is anything but cheap and easy.
Suppose management sued for discrimination after turning down a potential tenant. In that case, general liability will also cover these legal fees. According to statistics, injuries in apartment buildings often occur in a tenant’s space. However, the hallways, stairwells, elevators, and lobbies are as susceptible to such risks.
Commercial property insurance
The most damages that occur in an apartment building, or rather to, are covered by commercial property insurance –the most essential coverage a building can have. This is what will insure the structure against any physical damage, be it from other individuals, nature, or something within the residential building.
Every apartment has a different scope and size, and commercial property insurance is a one-size-fits-all with its protections. Seven of the nine property damages previously listed are all covered by this type of policy.
Apartment owners often refer to this as structure insurance because any structure they manage also has property coverage. This would include any garages, signage, and any separate facility like a wellness center.
Again, damage caused by weather, fire, criminal, and civil disturbances is covered for repairs and replacements. This is especially helpful for apartment buildings in big cities or metropolitan areas with a lot of traffic and crime.
Ordinance and law insurance
Apartment buildings are often subject to laws regarding their conditions and the latest repairs and renovations. This is particularly the case with older residential apartments as building codes change and must be updated with renovations or remodeling.
Ordinance and law insurance come in to cover those expenses since they are required by law. This policy coverage is easily understood and divided into three different protection areas.
Some apartment buildings might be required to fully replace something like a roof, even if it wasn’t fully damaged. One damaged area may warrant a total replacement by law. However, a commercial property policy will only cover the damaged area while ordinance and law coverage fully insures it.
The other two areas that ordinance and law coverage offer are demolition costs and higher construction costs associated with a complete roof replacement.
Workers compensation insurance
Every workplace must protect its employees, both physically and financially. Because of this, workers' compensation insurance is required more often than not.
Apartment buildings often have a team of staff to improve tenants' living quality. Security personnel, maintenance staff, and more than regular people may come to the building on shifts. At any moment, they can be injured or fall ill and miss work.
Some apartment buildings have doormen who sometimes have to work all hours of the night in the lobby. Workers' compensation is essential if they are injured and come to the rescue to cover any medical costs, legal fees, and even lost income if the employee has to miss work for any given time while in recovery.
Compared to the other types of commercial policies, workers' compensation is the most commonly required by law. In an apartment building context, this can be if a maintenance worker experiences electrical burns.
Enter your ZIP code below to view quotes for the Cheapest Business Insurance Rates.
Optional Apartment building insurance add-ons
The good news is that there are plenty of opportunities for add-ons and additional coverage for an apartment building policy for the more specific risks it may face.
Umbrella Insurance
There are several cases of apartment buildings filing insurance claims after significant damage occurs to the building, and their standard coverage needs to be increased to cover the higher-valued assets and parts of the possibly antique building.
Umbrella insurance extends coverage to property and damages that are more expensive than average. This can be beneficial coverage for luxury apartments and condos.
Cyber liability insurance coverage
Apartment building owners and staff may keep tenants, rent, and other essential documents and information on a computer system. Every business runs the risk of a cyber-attack or data breach of sensitive information, and building management’s information is some of the most sensitive information one can have.
Cyber liability insurance covers any damages caused by such an attack or breach and the recovery effort. This coverage is necessary for residential building owners if the apartment complex relies on a computer system.
Employee practices liability insurance
This is another essential coverage concerning employees, and a business would be covered against discrimination or wrongful termination claims. In other words, it mainly covers lawsuit costs due to issues that employees may feel they may be experiencing with their jobs.
Apartment building employees tend to have longer hours so that this lesser-known commercial coverage may be convenient and helpful.
Enter your ZIP code below to view quotes for the Cheapest Business Insurance Rates.
How much does Apartment building insurance cost?
A small apartment can cost anywhere from $67 to $89 monthly to insure– about $1,068 a year. However, this only accounts for the property damage portion of the coverage. It may cost much more to insure any given apartment based on its size, number of tenants, location, staff size, and even the age of the building.
Several landlords and apartment owners often opt for a business owner’s policy (BOP), which combines general liability, property damage, and business interruption coverage with an agreeable premium and cost.
It’s challenging to pick out an average cost for any commercial policy because it’s rare when two policyholders pay the same amount since everyone and everything has different levels of risk.
Apartment owners insurance from Insurance Navy
There’s much budgeting and moving money around when it comes to owning an apartment building property, and a steady rent income is everything.
Insurance Navy makes it easier for apartment owners as we do for a wide variety of business owners with our competitive business insurance and prioritization of personal budgets.
We’re home to some of our industry’s cheapest auto policies and homeowners rates, so why not tackle the commercial world?
New and old apartment building owners and managers can see how much they can start saving today with a free online quote. There may even be some significant discounts you and your building qualify for.