How much does apartment building insurance cost
The general liability insurance for an apartment building will depend on the following factors, the location, the number of units, the type of construction, sales, and experience.
Insurance Coverage for Apartment building
Apartment building insurance can get complicated when it comes to coverage. You need to work with a professional insurance agent who will help you to determine the coverage you need for your building to ensure it is fully covered. Some of the insurance coverage’s you need to consider for your apartment complex include.
General Liability Insurance
The maintenance of the common apartment areas is the owners’ responsibility. These areas carry many risks, and should someone get injured, you are liable, and the injured person can sue for damages.
General insurance protects you as the apartment owner against any lawsuit if someone claims they sustained body injuries from your property. The policy protects you from third-party injury claims for example, visitors or delivery persons can slip and fall while on your property and may decide to sue you. General insurance covers any lawsuits you will face as well as court settlements.
Commercial property insurance
The policy protects your property if a covered loss damages the building. Potential risks that can cause disasters include fire, vandalism, theft, and storms. It covers claims and lawsuits for the common areas and any additions to the structure that is being constructed.
The coverage will include
- age of the building
- materials used for construction
- type of building- duplex, high-rise
- security system and fire alarms in the apartments
- type of facilities offered at the apartments
Commercial umbrella insurance
Umbrella insurance provides excess protection that goes above and beyond what is covered by the coverage you own. It gives additional protection such that should you reach your limit on your liability insurance, and umbrella insurance covers the excess amount.
Business Owner’s Policy
A BOP covers your business in case of any business interruptions, as well as your commercial building as one. For example, there’s a fire at the apartment building; the policy will cover loss of income while the building is under repair.
Steps to take as an apartment owner to reduce the risk of liabilities
- Ensure the building is well maintained
- Notify tenants of any potential dangers
- Respect tenants right to privacy
- Eliminate any hazards within the building
- Don’t discriminate when renting apartments