What Insurance Coverages do Apartment Complex Owners Need?

For your clients who own an apartment complex, there may be some confusion about what kind of insurance coverage they need to invest in. As an insurance professional, it’s your job to guide those clients to the right level of coverage to protect the inherent risks of owning a habitational property. Apartment complex owners face various unique risks, including both liability and property exposures. It is important that they get the best kind of Habitational Insurance to protect against the myriad of daily risks and protect their bottom lines.

Here are the types of apartment complex property insurance options to share with your clients.

General Liability Insurance

Building owners are responsible for maintaining the common areas of the complex, which might include things like the lobby, gym, hallways, pool, parking lot, and more.

General liability insurance for apartments helps cover apartment building owners if someone alleges that they caused them property damage or bodily harm in some way. General liability insurance helps cover the legal expenses of a lawsuit if the injured party decides to bring a lawsuit against them. This policy also helps cover the costs that a building owner is legally obligated to pay to that person.

Property Insurance

Property insurance is another type of coverage that agents must recommend to their habitational clients. They own the building, so it’s a substantial investment on their end. Property insurance helps protect complex owners if a covered loss damages the structure. There are plenty of potential disasters that could befall a complex, especially in certain areas where things like flooding, tornados, or earthquakes are common.

However, owners must make sure they know which losses are covered by their property insurance policies. These covered perils extend to instances of fire, damage from smoke, lightning, vandalism, and explosions.

Business Income Insurance

If a client’s tenants were forced to leave their apartment homes due to a covered loss, the owner will undoubtedly face significant financial loss. A client would not be receiving any rent payments coming in as renters aren’t allowed in their units. Business income insurance helps to bridge this gap by reimbursing apartment owners for the income they would lose while a building is out of commission.

Umbrella Coverage

Building owners might come face-to-face with a more significant claim than the limits provided by their liability policy. When the limit of their liability policy is exhausted, apartment complex owners would be on the hook for paying the difference out of pocket.

This is where umbrella insurance comes in,  to provide coverage that is excess over what is offered by an underlying policy. When a liability policy is exhausted, an umbrella insurance policy helps cover the remaining amount, providing apartment complex owners additional liability insurance limits.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed, and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.