It doesn’t matter if you own a duplex or a multiplex; you will want apartment building insurance to protect your investment. Here are three primary types of insurance to choose from for this purpose.
There are a variety of options to choose from when selecting a basic apartment complex policy. Similar to any other landlord or commercial insurance policy, Most apartment building insurance policies cover the repair or replacement cost of the building in the event of a of a fire, flooding or other natural disasters; the contents of the apartments, however, however. The rental value is typically covered in these situations as well. Coverage is also available but not limited to business income, maintenance fees, mechanical failures, and employee dishonesty. Your agent should also evaluate the property to determine if you need additional coverage for items such as pools, fountains or playground equipment.
Insurance policies are also available for owners of multiple buildings or property management companies. Typical coverage for this type of policy includes general liability, property and an umbrella clause. Other areas of coverage can be written specific to the needs of your company to cover you for actions of your employees, management or board of directors.
Apartment building insurance for development companies is also available. This type of policy is similar to that offered for management companies, but also contains a clause for builder’s risk. Builders risk insurance, also known as construction insurance, not only covers the replacement cost of the actual structure, but also covers the replacement cost of any building materials, supplies and/or equipment on the job site if it is damaged or destroyed from vandalism, theft, fire, flooding or other circumstances beyond your control.