Apartment Building Insurance
Apartment buildings can make great investments, especially compared to detached homes. After all, maintenance is easier and less expensive when all of your units are under just one roof. In addition, due to the recent recession and increased number of foreclosures, more people than ever are renting rather than buying. Whether you already own an apartment building or are considering buying one now, you need to make sure you have the right business insurance for this type of investment. Get a look at what apartment building insurance covers before you start the process of obtaining coverage.
General Liability For Apartment Buildings
Your policy needs to include general liability. This ensures that you are covered in case anyone on the property slips on ice in the parking lot or is injured in any other way while on the premises. Liability can also pay for property damage for anyone whose personal belongings are negatively affected while on your property. For example, if a visitor’s car is damaged after driving over a pothole in the parking lot, your liability coverage will pay for it so you do not have to.
Additionally, this part of your apartment building insurance includes advertising injury coverage. This means it will pay for any lawsuits that claim you have committed libel, slander, or copyright infringement against another business.
When you own an apartment, building coverage is particularly important. You need to know the building will be repaired or replaced in the event of a fire, vandalism, or other damaging circumstances. This part of your apartment building insurance policy does not only apply to the exterior of the building. It also extends to any garages, swimming pools, storage sheds, playgrounds, fences, or other structures on the property. This way, you know you will not have to personally pay to rebuild your apartments when necessary, thereby protecting your real estate investment.
Business Owners (BOP)
A BOP includes several types of coverage that work together to protect your apartment building. A few things that this type of business insurance covers are equipment breakdown, accounts receivable, electronic data processing, sewer or drain backup, and business income. It can also ensure that your business personal property is replaced or repaired as needed after it is damaged or stolen. Otherwise, you would have to replace or fix it all yourself, which could lead to bankruptcy if you do not have the funds put away in case of emergency.
Excess liability is another term for an umbrella policy that should be included in your apartment building insurance. No matter how high your liability policy limit is, you never know when a costly lawsuit could exceed it, leaving you with a big bill to pay. In that case, you will need excess liability to pay the remainder of what you owe after your liability limit is reached. Luckily, you can add millions of dollars in excess liability coverage for a reasonable amount, which should give you some peace of mind when you own an apartment building.