Apartment Building Insurance
Get the coverage you need to protect an apartment building against fire damage, vandalism, and more.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Paul Martin is the Director of Education and Development for Myron Steves, one of the largest, most respected insurance wholesalers in the southern U.S.
Owning a residential rental property can be both personally and financially rewarding. But it can also come with a host of potential risks that need specific protection. Without the right apartment building owner’s insurance, landlords can face potential financial harm if something goes wrong.
Fortunately, an independent insurance agent can help you get set up with the right apartment complex insurance. They'll get you matched to the policy that includes all the coverage you need. But until then, here's a closer look at apartment building insurance.
Common Risks Faced by Apartment Building Owners
The primary concern for apartment building owners is protecting their property from catastrophic events. Your apartment complex insurance protects you against the costs of lawsuits and other risks, such as lost income after a covered loss.
Just a Few Common Risks Apartment Complex Owners Face on a Daily Basis:
- Fires, storms, and other catastrophic damage to the property
- Liability for tenant, employee, and visitor injuries
- Theft or vandalism
- Loss of rental income
- Invasion of privacy claims
- Advertising liability claims
- Discrimination lawsuits filed by disgruntled tenants or employees
- Allegations of fraud, misrepresentation, and other intentional acts by employees
These risks can all be addressed with just a few insurance policies tailored to your needs. An independent insurance agent knows the best local apartment building insurance companies that offer the protection you need.
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Basic Insurance Coverage for Apartment Building Owners
Insurance on apartment buildings factors in many different potential risks. While the specific coverages in your policy may vary because policies aren't standard, you can often expect to find the following:
- Commercial property coverage: Protects against damage, vandalism, or the destruction of your apartment buildings within a complex, as well as other structures on the property like garages, office space, common areas, fences, swimming pools, and storage buildings. Additions or improvements to the property, as well as maintenance equipment, are also covered.
- Business income coverage: Reimburses lost business income if the property gets damaged by a covered loss (e.g., a storm or fire) and results in a loss of income or suspension of operations while repairs are made to the property.
- Commercial general liability insurance: Protects against claims of property damage or bodily injury from third parties like tenants, visitors, repair persons, delivery persons, etc.
An independent insurance agent can help you find all the apartment building insurance you need by helping you assemble a policy that includes each type of coverage necessary for your business.
How Much Does Commercial Property Insurance Cost for Apartment Buildings?
Without using an apartment building insurance calculator, it's difficult to predict the exact cost of any component of your apartment complex insurance. For example, just the amount of commercial property coverage you need and its overall cost depends on a variety of factors, including:
- The age of your roof and mechanical systems
- The age of the building
- The location of your building or complex
- The type of building (e.g., high-rise, duplex, multifamily, etc.)
- The type of construction
- If the property has a swimming pool, fitness center, or clubhouse
- If the property has modern security features and fire protection systems
An independent insurance agent can recommend the right amount of commercial property insurance for your apartment complex.
Other Coverage Options for Apartment Building Owners
Your apartment building insurance policy might not be complete with just the basic coverages. Depending on your specific property and business operations, you may need to add one or more of the following types of coverage to complete your policy.
- Equipment breakdown insurance: Covers damage and loss of income caused by a breakdown of covered equipment, including steam boilers and other mechanical systems.
- Commercial umbrella insurance: Provides excess liability protection for events that exceed the limits of your existing liability coverage.
- Professional liability coverage: Protects apartment owners and landlords from claims that they have financially harmed someone due to professional negligence or errors.
- Workers compensation insurance: Protects employees who work on the premises from the costs of work-related illnesses or injuries.
- Commercial auto insurance: Covers any vehicles owned by your rental property business, including shuttle buses or maintenance trucks.
Your independent insurance agent will be able to recommend exactly which types of coverage you should add to complete your apartment building insurance policy.
Best Insurance Companies for Apartment Buildings Coverage
When you need coverage, you don't want to waste time browsing policies from carriers that don't deliver what you really need in the long run. That's why we've put together a list of just a few of our top-rated apartment building insurance carriers. These insurance companies offer products that can cover your apartment building or other rental property.
| Top-Rated Carriers for Apartment Buildings Coverage | Overall Company Rating |
| Travelers |
|
| Nationwide |
|
| Arbella |
|
| USAA |
|
| Allstate |
|
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The Benefits of an Independent Insurance Agent
An independent insurance agent can shop and compare apartment building insurance quotes for you from multiple different carriers. These agents work for you, not the insurance company. Ultimately, they'll get you matched to the policy that offers the best overall blend of coverage and cost.