Owning an apartment building can be highly profitable, but this type of business venture comes with a certain amount of risk. Apartment building insurance helps Massachusetts individuals and businesses that own apartment buildings mitigate many of the risks they face.
Apartment building insurance policies are similar to landlord policies, except apartment building policies are generally written for larger buildings. Since a building owner’s risk exposure increases with building size, these policies frequently have higher limits and more robust coverage than landlord policies offer.
Most people and businesses in Massachusetts who own an apartment building should have apartment complex insurance policy. Without coverage, building owners are dangerously exposed to risk and may be in violation of requirements they’re expected to meet.
Sometimes, landlords aren’t sure whether an apartment complex or landlord policy is better suited to their needs. In these situations, landlords should speak with an insurance agent who has in-depth knowledge of both kinds of policies. An agent who’s well-versed in this type of insurance will be able to explain the differences between policies and help landlords select the option that’s best suited to their specific situation.
Do Apartment Complex Insurance Policies Include Workers Compensation?Most apartment building owners have employees and therefore, need workers compensation coverage. In Massachusetts, there are only a few situations where a business that has employees isn’t legally required to carry workers compensation.
While many apartment building owners need it, workers compensation usually isn’t included in apartment complex policies. It’s normally purchased as a separate policy, but most insurance agents that are familiar with apartment complex policies can also help with workers compensation insurance. 
Apartment complex insurance policies typically offer an array of coverages. Most of the coverages they afford can be separated into property and liability protections.
Property protections generally help protect the assets that an apartment building owner has. These assets may include apartment buildings, land, maintenance equipment, common amenities and other items. Some of the property coverages that many policies make available are:
Liability protections normally help protect an apartment building owner themselves. These protections might help pay legal defense fees, judgements and settlements associated with covered liability lawsuits. Commonly available liability coverages include:
In addition to these, apartment building owners may also want rental income coverage. If a tenant’s rent isn’t collected for a covered reason, this might provide compensation for the lost revenue.
(Because insurers offer a variety of coverages and building owners have different insurance needs, the exact coverages and protections included in apartment complex policies can vary.)
For help insuring an apartment building, Massachusetts building owners should contact an independent insurance agent who specializes in apartment building insurance. An independent agent can show building owners policies from different insurance companies, and an agent who has helped other building owners will be able to help compare different policies.
